Question

If the reserve bank of india wanted to stimulate aggregate demand, it could select one:



a. Lower the target range for the overnight financing rate, thereby increasing interest rates throughout the economy.



b. Raise the target range for the overnight financing rate, thereby increasing interest rates throughout the economy.



c. Lower the target range for the overnight financing rate, thereby reducing interest rates throughout the economy.



d. Raise the target range for the overnight financing rate, thereby reducing interest rates throughout the economy.

Answer 1

d. Raise the target range for the overnight financing rate, thereby reducing interest rates throughout the economy.

Answer 2

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Option D >Raise the target range for the overnight financing rate, thereby reducing interest rates throughout the economy.