Which is the following action should NOT be taken if the central bank aims to increasing the purchasing power of the people? A) Increase the supply of money by buying government securities from the public. B) Reduce the personal tax rate and minimize the rate of the indirect tax such as goods and services tax (GST). C) Increase the bank's ability to lend by lowering the reserve requirement rate. D) Announce the new bank lending rate (BLR) at a lower level than before.
Which is the following action should NOT be taken if the central bank aims to increasing the purchasing power of the people? A) Increase the supply of money by buying government securities from the public. B) Reduce the personal tax rate and minimize the rate of the indirect tax such as goods and services tax (GST). C) Increase the bank's ability to lend by lowering the reserve requirement rate. D) Announce the new bank lending rate (BLR) at a lower level than before.
Chapter19: Money Creation
Section: Chapter Questions
Problem 12SQ
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Which is the following action should NOT be taken if the central bank aims to increasing the
A) Increase the supply of money by buying government securities from the public.
B) Reduce the personal tax rate and minimize the rate of the indirect tax such as goods and
services tax (GST).
C) Increase the bank's ability to lend by lowering the reserve requirement rate.
D) Announce the new bank lending rate (BLR) at a lower level than before.
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