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Which policy tool is used by the MPC of the Bank of England to maintain low inflation in the UK?
- a)Fiscal Policy.
- b)Exchange Rate Policy.
- c)Supply Side Policies.
- d)Monetary Policy.
Correct answer is option 'D'. Can you explain this answer?
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Which policy tool is used by the MPC of the Bank of England to maintai...
The MPC (Monetary Policy Committee) of the Bank of England uses monetary policy to maintain low inflation in the UK. This involves setting interest rates to influence aggregate demand in the economy. By increasing or decreasing interest rates, the MPC aims to achieve the government's inflation target and stabilize the economy.
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Which policy tool is used by the MPC of the Bank of England to maintain low inflation in the UK?a)Fiscal Policy.b)Exchange Rate Policy.c)Supply Side Policies.d)Monetary Policy.Correct answer is option 'D'. Can you explain this answer?
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