A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Oct/Nov 2017 · Q281 Mark
Monetary policy can be used to increase the level of business activity. Which action illustrates this?
Acurbing consumption through controls on credit
Blowering reserve requirements of banks to increase lending
Creducing government spending to achieve a budget surplus
Dstimulating company investments by increasing interest rates
✓ Correct answer
B: lowering reserve requirements of banks to increase lending
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