Identify one of the following which can NOT be ... - JAMB Economics 2023 Question

Increased interest rates are typically used to combat inflation, not to close a deflationary gap. In the context of closing a deflationary gap, which is a situation where aggregate demand is less than aggregate supply, the focus is on stimulating economic activity.

Increasing interest rates tends to have a contractionary effect on the economy, potentially reducing borrowing and spending, which may exacerbate deflationary pressures. 

The other options are generally measures used to close a deflationary gap by increasing money supply, government expenditure, and reducing taxes, respectively.