UPSC Prelims 2021 · CSAT (Paper 2) · Q44

Comprehension

Medium · Corollary

Read the following passage and answer the item that follows. Your answer to this item should be based on the passage only.

A central bank tightening interest rates to cool inflation achieves less if government spending simultaneously pumps more money into the same economy; conversely, fiscal austerity paired with ultra-loose monetary policy can leave demand chronically weak. Neither arm of economic policy fully succeeds while working at cross purposes with the other.

Which one of the following statements best reflects a corollary of the passage given above?