Economics · Monetary Policy
When a Central Bank's Monetary Policy Committee maintains a 'hawkish' stance on interest rates, it implies that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1interest rates are likely to be decreased to boost growth
- 2interest rates are kept high or increased to combat inflation✓
- 3interest rates will be kept permanently unchanged
- 4the money supply in the economy will be aggressively increased
Correct answer
interest rates are kept high or increased to combat inflation
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