Cheap money policy means __________.

making money available to trade and industry at cheaper interest rate.

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giving money at discounted price

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demanding more money for the same goods than earlier.

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printing money by cost efficient printing technology

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Solution

The correct option is A making money available to trade and industry at cheaper interest rate.
Cheap money policy refers to a monetary policy by the central bank where the central bank sets low interest rates so that credit is easily available to the general public in order to bring efficiency in trade and commerce in an economy. Such a policy is used by the government at the time of deflation or recession in the economy.

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