In order to control inflation the government sh... - WAEC Economics 2015 Question
In order to control inflation, the government should
A
reduce the cost of borrowing
B
buy securities in the open market
C
adopt restrictive monetary policy
D
discourage savings
correct option: c
One popular method of controlling inflation is through a contractionary monetary policy. The goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates.
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