Economics · Monetary Policy
Monetary policy and fiscal policy differ in their instruments even though both aim to promote macroeconomic stability. Which of the following is primarily an instrument of monetary policy rather than fiscal policy?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Repo rate adjustment by the central bank✓
- 2Public expenditure on infrastructure
- 3Changes in direct tax rates
- 4Budgetary subsidies for fertilizers
Correct answer
Repo rate adjustment by the central bank
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