Economics · Monetary Policy
The Taylor principle in monetary policy specifies that if inflation rises by 1 percentage point,
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1the nominal interest rate should be decreased by 1 percentage point.
- 2the nominal interest rate should be increased by more than 1 percentage point.✓
- 3the nominal interest rate should be increased by twice that rate.
- 4the nominal interest rate should be increased by exactly 1 percentage point.
Correct answer
the nominal interest rate should be increased by more than 1 percentage point.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Monetary Policy MCQs →Want more practice questions on Monetary Policy?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Monetary Policy