When fighting a recessionary gap, central banks will elect one: O a Increase; decrease O b. Increase; increase i Oc Decrease; decrease Od. Decrease; increase the bank rate in order to, the amount of loans being provided by commercial banks
When fighting a recessionary gap, central banks will elect one: O a Increase; decrease O b. Increase; increase i Oc Decrease; decrease Od. Decrease; increase the bank rate in order to, the amount of loans being provided by commercial banks
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:When fighting a recessionary gap, central banks will
Select one:
O a Increase; decrease
O b. Increase; increase
Oc. Decrease; decrease
Od. Decrease; increase
When leakages exceed injections, central banks will attempt to
Select one:
a Decrease; decrease
Ob increase increase
OC. Increase decrease
Od Decrease: increase
the bank rate in order to,
interest rates in order to
the amount of loans being provided by commercial banks
equilibrium income.
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