In 2007/2008, Why Was the Bank of England and the Government

Multiple Choice

In 2007/2008, why was the Bank of England and the government faced with a dilemma?

A) They were under pressure to raise interest rates to meet the inflation target.
B) They were facing the possibility of breaching the golden rule.
C) They were under pressure to cut interest rates to avert a recession.
D) They were under pressure to give a fiscal stimulus to boost the economy.
E) All of the above