Economy, asked by kurakulashoba, 1 year ago

When a central bank follows a Taylor-rule in the conduct of its monetary policy, then it (A) interest rates when the output gap and the (B) both fall.

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Answered by amritanshu6

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.

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When a central bank follows a Taylor-rule in the conduct of its monetary policy, then it (A)______ interest rates when the output gap and the (B) ______ both fall.

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When a central bank follows a Taylor-rule in the conduct of its monetary policy, then it (A) interest rates when the output gap and the (B) both fall.