A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Feb/Mar 2022 · Q301 Mark
What are government monetary policies that would be the most effective in a global recession?
Aallowing the rate of interest to fluctuate and increasing business taxation
Bincreasing the budget surplus and raising tariffs on imports
Ckeeping the rate of interest very low and increasing the money supply
Draising the rate of interest and restricting the money supply
✓ Correct answer
C: keeping the rate of interest very low and increasing the money supply
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