Economy, asked by kidszone1807, 2 months ago

Explain monetary policy measure in response to AD Shock And AS Shock

Answers

Answered by kshobanack

Explanation:

When the economy is stuck in recession, monetary policy may be able to boost spending. Monetary policy is usually operated by an independent Central Bank. Their target is low inflation, not economic growth. ... If there is a banking crisis, lower interest rates will not encourage banks to lend.

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