Home » Classroom » WAEC Economics 2015 Question

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.

Please share this, thanks:

Add your answer

Notice: Posting irresponsibily can get your account banned!

No responses