Which monetary measure helps to correct deficient demand?

Raising the bank rateCorrect answerYour answerRaising the SLRCorrect answerYour answerBuying government securities in the open marketCorrect answerYour answerRaising margin requirementsCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Purchases add to banks' reserves, so they can lend more and spending rises.

Concept: Monetary policy for deficient demand
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsMonetary measures

Practise this chapter →

Ten questions from Excess & Deficient Demand, at your own pace.

Practise this chapter →

Ten questions from Excess & Deficient Demand, at your own pace.

Practise this chapter All 53 questions in Excess & Deficient Demand Revise the notes for Excess & Deficient Demand

Which monetary measure helps to correct deficient demand?

Explanation