Answer to Question #254623 in Macroeconomics for BL4 TUT 9

Question

3.To counteract a recession, the SARB could:

A. Raise the required reserve ratio and lower the repo rate.

B. Buy government securities on the open market and raise the required reserve ratio.

C. Sell government securities on the open market and raise the repo rate.

D. Buy government securities on the open market and lower the required reserve ratio.

E. Buy government securities on the open market and raise the repo rate.

Answer 1

D. Buy government securities on the open market and lower the required reserve ratio.