Economy, asked by bhattihari587, 8 months ago

How monetary policy is used to correct the problems of excess demand ? Subject - Business Economics ​

Answers

Answered by OindrillaLahiri
2

Answer:

hope this helps

Explanation:

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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