Explain the following as effects of low policy rates to the growth of an economy: 1. It can cause inflationary pressure 2. It might lead to a boost in economic growth 3. Investments are more desirable 4. There will be relatively low borrowing cost for government.
Explain the following as effects of low policy rates to the growth of an economy: 1. It can cause inflationary pressure 2. It might lead to a boost in economic growth 3. Investments are more desirable 4. There will be relatively low borrowing cost for government.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Explain the following as effects of low policy rates to the growth of an economy:
1. It can cause inflationary pressure
2. It might lead to a boost in
3. Investments are more desirable
4. There will be relatively low borrowing cost for government.
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