Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

A country is experiencing recession and has spare resources that are not being used. The government cuts interest rates. According to Keynesian economists, what will the short-run result be? (unemployment; economic growth; inflation)

  • Adecrease; increase; decrease
  • Bdecrease; increase; uncertain
  • Cincrease; increase; increase
  • Dincrease; unchanged; uncertain

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