The novel coronavirus has significantly affected and altered the economic courses of countries around the world, be
Question:
The novel coronavirus has significantly affected and altered the economic courses of
countries around the world, be it developing or developed. On July 24, 2020, a news
article published in the Bangla daily Prothom Alo, which mentioned that recently there
has been an increase in the premature withdrawal of National Savings Schemes (NSS).
Moreover, businesses, in general, are experiencing slowdowns due to the pandemic
which implies that tax revenues that can be raised will not be able to meet the
expectation of the proposed budget. If the government sticks to the expenditures
proposed in the budget while facing budget financing challenges as described above, it
may resort to borrowing money from Bangladesh Bank. In order to meet the borrowing
demand of the government, Bangladesh Bank may then consider "printing" more
money. This is the main reason for worry. Zimbabwe in late 2000 is a case in point.
Moreover, reportedly, Bangladesh Bank has recently announced a policy to increase
money supply in the market.
Explain how all these facts mentioned above is going to affect the interest rate.