Economics · Monetary Policy
The term 'withdrawal of accommodation' in monetary policy stance implies:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Expansionary fiscal stimulus by the government
- 2Gradual normalization of policy stance by reducing excess liquidity or stimulus✓
- 3Active bond purchases by the central bank to inject liquidity
- 4A sudden increase in the Cash Reserve Ratio (CRR)
Correct answer
Gradual normalization of policy stance by reducing excess liquidity or stimulus
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