In Which of the Following Situations Would the Central Bank

question 82

Multiple Choice

In which of the following situations would the central bank in a certain country be most likely to lower interest rates?

• A)The economy is growing slowly or not at all.
• B)Inflation is rising rapidly.
• C)The level of investment is very low.
• D)The rate of savings is extremely high.
• E)When the government needs to borrow money more cheaply.