Question 53
HardOriginal questionMatch each measure with the problem it is used to correct.
| List I | List II |
|---|---|
| A. Raising the CRR | I. Deficient demand (monetary) |
| B. Cutting taxes | II. Excess demand (open market) |
| C. Selling government securities | III. Deficient demand (fiscal) |
| D. Cutting the repo rate | IV. Excess demand (monetary) |
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
A higher CRR and sales of securities shrink credit; tax cuts and repo cuts expand spending.
- Concept
- Measures and problems
- Typical timeTypical
- 120 s
- Your timeYours
- —
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