Raising the bank rate is a measure to correct

deficient demandCorrect answerYour answerunemployment caused by low demandCorrect answerYour answerexcess demandCorrect answerYour answera deflationary gapCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

A higher bank rate makes borrowing costlier and reduces spending.

Concept: Bank rate as a remedy
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsMonetary measures

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

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

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Raising the bank rate is a measure to correct

Explanation