"A decrease in short-term nominal interest rates necessarily implies a stance of monetary easing." Is this statement true, false, or uncertain? Explain your answer.

The country's monetary policy is the method it employs to control the amount of money in circulation levels in the business. Unemployment, GDP, and expenditure are only a few aspects of macroeconomic objectives that are addressed by fiscal policy.

An easy monetary attitude is inextricably linked to a fall in brief lending rates. That statement is untrue since tight fiscal policy may lead the cost of borrowing to decline, resulting in a decrease in interest rates. The discrepancy here between relative interest lending rates is known as the cost of borrowing.

As either an outcome, it's conceivable that whenever the actual cost of borrowing falls, predicted volatility falls, even more, resulting in an increase in the cost of borrowing, which is the consequence of a recession or tightening monetary regulation.

As a consequence, it is not always true that its relaxation of fiscal policy causes the cost of debt to decline.