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You are the new Governor of State Bank of Pakistan after Reza Baqir.For each of the situations listed below, decide if you would use Easy-Monetary
You are the new Governor of State Bank of Pakistan after Reza Baqir.For each of the situations listed below, decide if you would use Easy-Monetary policy or Tight-Monetary policy.
- RGDP dropped from 3 percent to 1 percent in the last year.
- The CPI and GDP deflator have risen 3 percent in the last six months.
- Commercial interest rates are rising, but the SBP has not raised rates.
- RGDP is growing steadily, and prices are rising sharply.
- The Pakistan is experiencing both high inflation and high unemployment.
- We are in a recession.Factory orders are down, and the economy appears to be slumping.
- Unemployment is low and prices are rising steadily.
- Unemployment rates are pushing 11 percent while the CPI has fallen from 8 percent to 2 percent growth.
- We are in a recession but are experiencing high inflation.
- The money supply appears to be tight, and prices are on the rise.
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