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Answer to Question #123779 in Macroeconomics for Ingrid
Question #123779
Which one of the following statements is correct?
A. A decrease in the repo rate restrains the money creation process.
B. The SARB can withdraw money from circulation by buying bonds in the secondary market.
C. Expansionary monetary policy shifts the money supply curve to the left.
D. An increase in the repo rate restrains the money creation process.
A. A decrease in the repo rate restrains the money creation process.
B. The SARB can withdraw money from circulation by buying bonds in the secondary market.
C. Expansionary monetary policy shifts the money supply curve to the left.
D. An increase in the repo rate restrains the money creation process.
Expert's answer
Option B
The SARB can withdraw money from circulation by buying bonds in the secondary market.Â
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