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Author Question: Assume that the UK's unemployment rate is 10% and the inflation rate is 1%. The most likely policy ... (Read 93 times)

mspears3

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Assume that the UK's unemployment rate is 10% and the inflation rate is 1%. The most likely policy for the Bank of England to pursue would be to
◦ decrease interest rates to try to eliminate unemployment.
◦ do nothing because the inflation rate is so low.
◦ increase interest rates to try to bring the inflation rate to zero.
◦ decrease interest rates so long as predicted inflation remained below 2%.


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Marked as best answer by mspears3 on May 25, 2020

cuttiesgirl16

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mspears3

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Reply 2 on: May 25, 2020
Great answer, keep it coming :)


dreamfighter72

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Reply 3 on: Yesterday
Excellent

 

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