A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Feb/Mar 2018 · Q301 Mark
Which type of policy would have the most immediate effect in dealing with a deflationary economic downturn?
Aincreasing the government's budget surplus
Bincreasing liquidity by assisting banks to lend more
Cinvesting in projects to improve transport networks
Dswitching the burden of taxation from earning to spending
✓ Correct answer
B: increasing liquidity by assisting banks to lend more
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