If Saving Exceeds Investment, the Appropriate Countercyclical Monetary Policy Would

question 55

Multiple Choice

If saving exceeds investment, the appropriate countercyclical monetary policy would be:

• A)an increase in the reserve requirement.
• B)a cut in the discount rate.
• C)an open market sale of government bonds.
• D)an increase in the federal funds rate.

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Flexibility

The quality of being adaptable or variable, especially in the face of change or new circumstances.

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