2 Question 1(Multiple Choice ) (04.06 MC) Which of the following best explains why a monetary policy cannot help a country remove the inflationary gap in the economy? O A crowding out effect reduces private investment. O An increase in taxes discourages investment in the economy. O An increase in the reserve ratio does not translate to changes in the interest rate quickly. O Buying of securities leads to a decrease in the amount of credit in the economy. O Government spends too much on the unnecessary areas.
