Asked by
Arely De La Torre
on Oct 12, 2024
Verified
If we are in a recession and follow conventional monetary policy,interest rates will ____ and then ____.
A) fall;fall further
B) fall;rise
C) rise;fall
D) rise;rise further
Conventional Monetary Policy
Central bank actions involving the manipulation of interest rates and control of the money supply to influence economic activity.
Interest Rates
The cost of borrowing money or the return on investment, expressed as a percentage, indicative of the price of credit in the economy.
- Familiarize with the conventional fiscal and monetary approaches for the alleviation of inflation and recessions.
Verified Answer
JW
Learning Objectives
- Familiarize with the conventional fiscal and monetary approaches for the alleviation of inflation and recessions.