Question on: SS2 Economics - Control of Inflation/Deflation
What tool can central banks use to control inflation?
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A
Expansionary monetary policy
B
Expansionary fiscal policy
C
Quantitative easing
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Correct Option: A
(Expansionary monetary policy can be used to control inflation by adjusting taxes and government spending. By increasing taxes or decreasing government spending, they can reduce demand and control inflation)
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