explain any 4 monetary measures to correct excess demand (marks 4)
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In a situation of excess demand, the central bank raises the limit of margin requirements. This discourages borrowing because it makes traders get less credit against their securities. ... Other measures of monetary policy are credit rationing, control of consumer credit, wage freeze and direct action....
Answered by
1
Answer:
In a situation of excess demand, the central bank raises the limit of margin requirements. This discourages borrowing because it makes traders get less credit against their securities. ... Other measures of monetary policy are credit rationing, control of consumer credit, wage freeze and direct action.
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