Question

If(A).... Interest rates when the output gap and the (B)...both fall. When the central bank applies taylor rule in management of its mandatory policy.

Answer 1

Demonetisation led to multiple benefits, lower interest rates: PMO. On January 1, State Bank of India surprised the markets by slashing the marginal cost of funds based lending rate (MCLR) by 0.9 per cent. Other banks followed suit. The outstanding demonetised notes as on November 8, 2016 were Rs 15.44 lakh crore.