How can monetary and fiscal policy be used to fight deflation – InterviewSolution

1.	How can monetary and fiscal policy be used to fight deflation
Answer» The traditional tool of monetary policy is INTEREST rates. If INFLATION is too low, the Central Bank can try to cut interest rates. In theory, this should boost spending and aggregate demand. For EXAMPLE, lower rates reduce the cost of MORTGAGE payments, giving people more to spend.follow me

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