During 2022, what was the primary motive of central banks in raising interest rates?
Central banks raise policy interest rates (contractionary monetary policy) primarily for 'Taming inflation'—increasing the cost of borrowing to cool down excess aggregate…
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During 2022, what was the primary motive of central banks in raising interest rates?
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Correct answer B
Central banks raise policy interest rates (contractionary monetary policy) primarily for 'Taming inflation'—increasing the cost of borrowing to cool down excess aggregate demand and anchor inflationary expectations.
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UGC NET Commerce