Economics · Economy
If the Monetary Policy Committee (MPC) decides to employ the primary tool of monetary policy to counter high inflation, what action is it most likely to take?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Reduce the tax rate on corporate profits.
- 2Issue a new government bond to borrow money from the market.
- 3Increase the Policy Repo Rate.✓
- 4Reduce the Statutory Liquidity Ratio (SLR) for all commercial banks.
Correct answer
Increase the Policy Repo Rate.
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