The concept of 'Crowding Out' can occur through which of the following channels?
A. Higher interest rates reducing private investment and appreciation of the currency reducing net exports
B. Only through increased private consumption
C. Only through lower interest rates
D. Only through increased net exports
Answer: Option A
Solution (By JKSSB Mock Tests)
Government borrowing can raise interest rates (financial crowding out) and, in an open economy, appreciate the currency, thereby reducing net exports (international crowding out).
Explanation:
The recognition of housing as a human right, grounded in international human-rights instruments, entails obligations on states to ensure progressive access to adequate, affordable and secure housing for all.
Explanation:
Average inflation targeting commits the central bank to achieve an average inflation rate over a longer period, so that periods of below-target inflation are followed by periods of above-target inflation (and vice versa).
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