in high-income countries, many central banks run highly expansionary policies that are successful in the short run. what is the interest rate associated with these policies?

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08-12-2022
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in high-income countries, many central banks run highly expansionary policies that are successful in the short run. what is the interest rate associated with these policies?

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TiyashaNaskar TiyashaNaskar · Answer 1 · 2022-12-15T04:42:34+01:00

The interest rate associated with these policies is typically very low, close to zero. Central banks in high-income countries often employ near-zero or even negative interest rates in order to encourage borrowing and stimulate economic growth.

What does Intrest rate mean?

The percentage of a sum of money charged for its use, usually expressed as an annual percentage rate, is known as the interest rate. It is the interest rate charged by a bank or other lender for borrowing money, or the interest rate paid by a bank to its savings account customers for keeping money in an account.

What does Saving account means?

A savings account is a deposit account at a financial institution that offers principal protection as well as a low interest rate. The account holder can deposit and withdraw funds as needed while earning interest on the balance. Savings accounts are typically used to hold funds for short-term objectives.

To know more about Saving account,

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