If the central banks wishes to stimulate aggregate demand, hence macro-economic activity, it would:

a) purchase assets in order to reduce interest rates
b) sell assets in order to reduce interest rates
c) purchase assets in order to raise interest rates
d) sell assets in order to raise interest rates

Answer: a) purchase assets in order to reduce interest rates

Business

You might also like to view...

A recent Nielsen survey found that online customer reviews were the most trusted source of brand information

Indicate whether the statement is true or false

Business

A coffeehouse that has added free wireless Internet connections for its patrons' laptop computers is offering a(n) ________

A) core service B) augmented service C) intangible good D) disintermediated service E) people-based service

Business