Question: Identify the statement as True, False, or Uncertain, and explain your reasoning (in total of not more than 150 words). The maximum marks for each

Identify the statement as True, False, or Uncertain, and explain your reasoning (in total of not more than 150 words). The maximum marks for each question will be given for a full and correct explanation. You may use written, diagrammatic, and mathematical arguments as appropriate.

A macro-prudential policy limiting how much households/firms can borrow (introduced to address a housing bubble) should be accompanied by a fall in the central banks policy rate

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