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A Government Could Use Control of a Central Bank to Further

Question 113

Multiple Choice
A government could use control of a central bank to further its political interests by:

A government could use control of a central bank to further its political interests by:


A) decreasing the cash rate before an election to decrease production and employment.
B) decreasing the cash rate before an election to increase production and employment.
C) decreasing the cash rate before an election to decrease inflation.
D) increasing the cash rate before an election to increase inflation.

Correct Answer:

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