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    5. Which monetary policy stance is characterized by low interest rates?

    Question

    Which monetary policy stance is characterized by low

    interest rates?
    A Hawkish Stance Correct Answer Incorrect Answer
    B Dovish Stance Correct Answer Incorrect Answer
    C R-Squared Stance Correct Answer Incorrect Answer
    D Hicksian Stance Correct Answer Incorrect Answer

    Solution

    A dovish monetary policy stance promotes low interest rates to stimulate borrowing and economic growth, distinguishing it from the more restrictive hawkish stance.

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    Relevant for Exams:

    • RRB JE
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