Advertisements
Advertisements
Question
Explain the role of 'Margin Requirements' in removing this deficient demand gap.
Advertisements
Solution
Reduction of margin money requirements is a measure which induces borrowers to avail more loans from commercial banks. This, in turn, increases the ability to purchase more. In this way, the aggregate demand increases to the level of aggregate supply and the economy attain equilibrium.
shaalaa.com
Is there an error in this question or solution?
