Which of the following is the most effective monetary policy tool for managing short-term fluctuations in the economy?

CA Foundation · Business Economics · MTP · January 2025
Which of the following is the most effective monetary policy tool for managing short-term fluctuations in the economy?
(A) A. Open market operations
(B) B. Changing tax rates
(C) C. Changing government expenditure
(D) D. Price control measures

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Open market operations

Topics: Money Market

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