Question
Imagine that the Reserve Bank would like lower interest rates to stimulate the economy, but is worried that low interest rates would be bad for
Imagine that the Reserve Bank would like lower interest rates to stimulate the economy,
but is worried that low interest rates would be bad for importers.
1. Why might lower interest rates stimulate the economy?
2. Why might lower interest rates be bad for importers?
3. Is this dilemma more or less serious when international capital flows very freely?
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
