Consider the following statements Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means. Which one of the following is correct in respect of the above statements?
Question:
Consider the following statements Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means. Which one of the following is correct in respect of the above statements?
Consider the following statements Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means. Which one of the following is correct in respect of the above statements?
Options
Answer: Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
Explanation:
Post-COVID inflation led central banks worldwide to hike interest rates to curb demand. The explanation is valid as monetary tightening is the standard policy tool against inflation.
Explanation:
Post-COVID inflation led central banks worldwide to hike interest rates to curb demand. The explanation is valid as monetary tightening is the standard policy tool against inflation.
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