12 Views

Question : Macroeconomic policy tools include:

Option 1: Individual tax rates

Option 2: Consumer demand curves

Option 3: Central bank interest rates

Option 4: Price elasticity of supply


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Central bank interest rates


Solution : The correct answer is (c) Central bank interest rates.

Macroeconomic policy refers to the use of various tools and strategies by policymakers to influence and manage the overall performance of the economy. Central banks, as part of their monetary policy, often use interest rates to influence economic conditions. By adjusting interest rates, central banks can impact borrowing costs, investment levels, consumption, and overall economic activity. Lowering interest rates tends to stimulate borrowing, investment, and consumer spending, thereby promoting economic growth. Conversely, raising interest rates can cool down an overheating economy and control inflation.

Related Questions

Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates and judiciaries
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
VIT Bhopal University | M.Tec...
Apply
M.Tech admissions open @ VIT Bhopal University | Highest CTC 52 LPA | Apply now
Amity University | M.Tech Adm...
Apply
Ranked amongst top 3% universities globally (QS Rankings).
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024) | 40 crore+ scholarships distributed
Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024) | 30+ Specializations | AI Powered Learning & State-of-the-Art Facilities
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books