Investors in Bahrain are complaining that there is not enough credit that are being made available for them. Interest rates are low but still there are not many lenders of money who are willing to lend their money. What appropriate monetary policies can be implemented in this case? a. Decrease income taxes and increase government spending b. Increase cash reserve ratio and increase interest rates a little to encourage lenders c. Decrease cash reserve ratio and increase interest rates a little to encourage lenders d. Decrease cash reserve ratio and decrease interest rates a little to encourage lenders
Investors in Bahrain are complaining that there is not enough credit that are being made available for them. Interest rates are low but still there are not many lenders of money who are willing to lend their money. What appropriate monetary policies can be implemented in this case? a. Decrease income taxes and increase government spending b. Increase cash reserve ratio and increase interest rates a little to encourage lenders c. Decrease cash reserve ratio and increase interest rates a little to encourage lenders d. Decrease cash reserve ratio and decrease interest rates a little to encourage lenders
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter14: Money And The Economy
Section: Chapter Questions
Problem 18QP
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Question
Investors in Bahrain are complaining that there is not enough credit that are being made available for them. Interest rates are low but still there are not many lenders of money who are willing to lend their money. What appropriate
a.
Decrease income taxes and increase government spending
b.
Increase cash reserve ratio and increase interest rates a little to encourage lenders
c.
Decrease cash reserve ratio and increase interest rates a little to encourage lenders
d.
Decrease cash reserve ratio and decrease interest rates a little to encourage lenders
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