If the output is too low,to achieve the medium run equilibrium,the central bank will
A)increases policy rate.
B)reduces policy rate.
C)increase money supply.
D)increases inflation rate.

Name: If the output is too low,to achieve the medium run equilibrium,the central bank will A)increases policy rate. B)reduces policy rate. C)increase money supply. D)increases inflation rate.
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Question

Quizplus · Accepted Answer

The central bank will reduce the policy rate to increase the money supply and stimulate economic activity.

If the Output Is Too Low,to Achieve the Medium Run