Economics · Monetary Policy
Which of the following descriptions best fits a 'hawkish stance' adopted by a central bank?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A neutral approach aimed at keeping exchange rates stable without altering domestic borrowing rates.
- 2A contractionary policy stance where the central bank's top priority is to curb inflation by raising interest rates.✓
- 3An accommodating policy stance adopted when economic growth requires immediate financial support.
- 4An expansionary monetary policy focused on increasing the money supply and lowering interest rates.
Correct answer
A contractionary policy stance where the central bank's top priority is to curb inflation by raising interest rates.
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