Question on: SS2 Economics - Control of Inflation/Deflation

What tool can central banks use to control inflation?

View related lesson
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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