In which of the following cases is the Bank of England likely to keep interest rates low?
A) If the Bank anticipates GDP to fall below its target.
B) If the current rate of inﬂation is very high.
C) If interest rates in other leading economies is low.
D) If actual GDP exceeds potential GDP.

Question

Quizplus · Accepted Answer

When the Bank of England anticipates GDP to fall below its target, it may keep interest rates low to stimulate economic growth by encouraging borrowing and investment.

In Which of the Following Cases Is the Bank of England