If the economy is in recession with high unemployment and output below potential GDP, then __________________ would cause the economy to return to its potential GDP?
A. a tight monetary policy
B. fewer loanable funds
C. a loose monetary policy
D. higher interest rates
Answer:C
If the economy is in recession with high unemployment and output below potential GDP, then __________________ would cause the economy to return to its potential GDP?
A. a tight monetary policy B. fewer loanable funds C. a loose monetary policy D. higher interest rates
Explanation: Type: Multiple Choice