Multiple Choice
Which of the following is an appropriate policy for a central bank to follow if the economy is plagued with deflation?
A) increasing the target interest rate on overnight loans
B) using contractionary monetary policy to drive up interest rates
C) consistently pursuing policy to promote the credibility of the central bank
D) gradually raising the required reserve rate
E) sharply increasing the target for the overnight rate
Correct Answer:
Verified
Correct Answer:
Verified
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