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Economics · May / June 2022 · Paper 12 · Question 18

2281Monetary policy

A government wishes to pursue an expansionary monetary policy. What should it do?

  1. Adiscourage bank lending
  2. Bgive subsidies to firms
  3. Clower income tax thresholds
  4. Dlower interest rates

As printed in the paper

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Correct answer: D. lower interest rates

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