ECON545 Week-6 Discussion 2

"Monetary policy would involve cutting interest rates. Lower rates decrease the cost of borrowing and encourage people to spend and invest. This increases AD and should also help to increase GDP and reduce demand deficient unemployment. Also lower interest rates will reduce exchange rate and make exports more competitive."

Pettinger, T. (2011). Policies for Reducing Unemployment | Economics Help. Retrieved April 6, 2015, from

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