hich of the following describes the chain of events the Central bank uses to fight recession? A. Raise the monetary policy rate target, sell government securities, decrease reserves and loans, increase aggregate demand. B. Raise the monetary policy rate target, buy government securities, increase reserves and loans, decrease aggregate demand. C. Lower the monetary policy rate target, buy government securities, decrease reserves and loans, decrease aggregate demand. D. Lower the monetary policy rate target, buy government securities, increase reserves and loans, increase aggregate demand.
hich of the following describes the chain of events the Central bank uses to fight recession? A. Raise the monetary policy rate target, sell government securities, decrease reserves and loans, increase aggregate demand. B. Raise the monetary policy rate target, buy government securities, increase reserves and loans, decrease aggregate demand. C. Lower the monetary policy rate target, buy government securities, decrease reserves and loans, decrease aggregate demand. D. Lower the monetary policy rate target, buy government securities, increase reserves and loans, increase aggregate demand.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following describes the chain of events the Central bank uses to fight recession?
A. Raise the
B. Raise the monetary policy rate target, buy government securities, increase reserves and loans, decrease aggregate demand.
C. Lower the monetary policy rate target, buy government securities, decrease reserves and loans, decrease aggregate demand.
D. Lower the monetary policy rate target, buy government securities, increase reserves and loans, increase aggregate demand.
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