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During a contract!on what would you do to stimulate the economy? Ralse the RRR Raise the DR Sell Bonds Lower the RRR , Lower the DR Buy Bonds

Problemas

During a contract!on what would
you do to stimulate the economy?
Ralse the RRR Raise the DR Sell Bonds
Lower the RRR , Lower the DR Buy Bonds

During a contract!on what would you do to stimulate the economy? Ralse the RRR Raise the DR Sell Bonds Lower the RRR , Lower the DR Buy Bonds

Solución

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Antoniomaestro · Tutor durante 5 años
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To stimulate the economy during a contraction, you would typically lower the Reserve Requirement Ratio (RRR) and buy bonds. Lowering the RRR allows banks to lend more, increasing the money supply and stimulating economic activity. Buying bonds injects money into the economy, lowering interest rates and encouraging borrowing and investment.
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