Question

explain the monetary measures to control deficient demand​

Answer 1

Answer:

Open Market Operation (Purchase of Securities):

-> In a situation of deficient demand leading to deflation, central bank purchases government securities and bonds from commercial bank. With the purchase of these securities, the power of commercial bank of giving loans increases, which will control deficient demand.

Answer 2

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Open Market Operation (Purchase of Securities):

• -> In a situation of deficient demand leading to deflation, central bank purchases government securities and bonds from commercial bank. With the purchase of these securities, the power of commercial bank of giving loans increases, which will control deficient demand.