Answer to Question #287630 in Macroeconomics for Asanda

Question #287630

Using the AD-AS analysis. A rise in the repo rate will

1
Expert's answer
2022-01-14T13:50:33-0500

Higher the repo rate, higher will be the cost of borrowing for banks and vice-versa. So, the demand for money will decrease, AD will decrease, and both output and price level will decrease too.


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