Economics (AS & A Level) · May / June 2021 · Paper 13 · Question 27
9708Monetary policy
Which type of policy would have the most immediate effect in dealing with a deflationary economic downturn?
- Aincreasing the government's budget surplus
- Bincreasing borrowing by assisting banks to lend more
- Cinvesting in long-term projects to improve transport networks
- Dswitching the burden of taxation from earning to spending
As printed in the paper
Show the answer
Correct answer: B. increasing borrowing by assisting banks to lend more
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.