Economy, asked by XIuhuyasa321, 1 year ago

Explain the concept of "Deflationary Gap". Also Explain the role of "Margin Requirements" in reducing it.

Answers

Answered by ydtodkar25
1

Hence, EF is the deflationary gap. Reduce Margin requirement refers to the difference between the amount of loan granted and the current value of security offered for loans. In case of deflationary gap, the margin requirements are lowered to increase the flow of credit by encouraging people to borrow.

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