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Economics miscellaneous

  1. A low interest policy is also known as :
    1. cheap money policy
    2. income generating
    3. dear money policy
    4. investment policy
Correct Option: A

Cheap money policy involves loan or credit with a low interest rate, or the setting of low interest rates by the central bank of the country. Cheap money is good for borrowers, but bad for investors. Cheap money policy was one of the primary catalysts of the 2008 recession.



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