ESI Explained Monetary Policy and Fiscal Policy | RBI Grade B NABARD Grade A 2024 Preparation

The relationship between monetary and fiscal policy is complex and there is no one-size-fits-all approach to using these two tools together. However, in general, monetary and fiscal policies are most effective when they are used in a complementary way. For example, if the government is trying to stimulate the economy, it may be helpful to increase government spending at the same time that the central bank is lowering interest rates.

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