Answer to Question #255359 in Macroeconomics for Prisca Mahlalela

Question

To counteract a recession, the SARB could:

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

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

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

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

Answer 1

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