If the economy is in recession with high unemployment and output below potential GDP, then __________________ would cause the economy to return to its potential GDP A. A tight monetary policy B. Fewer loanable funds C. A loose monetary polity D. Higher interest rates
1 answer
Question:
If the economy is in recession with high unemployment and output below potential GDP, then __________________ would cause the economy to return to its potential GDP
A. A tight monetary policy
B. Fewer loanable funds
C. A loose monetary polity
D. Higher interest rates
A. A tight monetary policy
B. Fewer loanable funds
C. A loose monetary polity
D. Higher interest rates
Answers
Answer:option c is the correct answer: loose monetary policyExplanation:option c is the correct answer: loose monetary policymonetary policy is refer to that policy in economic system of state which describe the supply and distribution of money by government. Therefore if loose monetary policy applied then it should easy accessible to all people and directly boost the economy.Loose monetary policy refer to the cutting of high interest rate which benefit to all people.
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