What would the central bank do to close a recessionary gap?

asked Feb 3, 2023 63.3k views

19 votes

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6 votes

Answer:

Lowering the reserve rate, and/or decreasing the discount rate, buying securities.

Step-by-step explanation:

Doing this will increase money supply in the market.

Liang Wu answered Feb 9, 2023

3.4k points

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