Multiple choice

Cheap money means

  1. low rates of interest

  2. low level of saving

  3. low level of income

  4. low level of standard of living
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cheap money refers to a situation where interest rates are low, making borrowing affordable for businesses and individuals. When central banks keep rates low, it's called 'cheap money' policy. Options B, C, and D refer to economic indicators (savings, income, standard of living) that are unrelated to the cost of borrowing money.

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