5. Suppose that the economy fell into a recession. The central bank decided to take a monetary policy to help the economy. Which tool from below would the central bank use for the policy? Selling bonds to private banks, lowering reserve ratio or reducing loans to private banks And to which direction the policy shift the AD curve: Left or Right? Action: Direction:
5. Suppose that the economy fell into a recession. The central bank decided to take a monetary policy to help the economy. Which tool from below would the central bank use for the policy? Selling bonds to private banks, lowering reserve ratio or reducing loans to private banks And to which direction the policy shift the AD curve: Left or Right? Action: Direction:
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
Problem 8PA
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5. Suppose that the economy fell into a recession. The central bank decided to take a
help the economy.
Which tool from below would the central bank use for the policy?
Selling bonds to private banks, lowering reserve ratio or reducing loans to private banks
And to which direction the policy shift the AD curve: Left or Right?
Action:
Direction:
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