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Economics (AS & A Level) · Feb / March 2022 · Paper 12 · Question 30

9708Monetary policy

What are government monetary policies that would be the most effective in a global recession?

  1. Aallowing the rate of interest to fluctuate and increasing business taxation
  2. Bincreasing the budget surplus and raising tariffs on imports
  3. Ckeeping the rate of interest very low and increasing the money supply
  4. Draising the rate of interest and restricting the money supply

As printed in the paper

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Correct answer: C. keeping the rate of interest very low and increasing the money supply

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