Inflation can be reduced by
A) announcing the policy.
B) taking steps to ensure its credibility.
C) both of the above.
D) none of the above.

Question

Quizplus · Accepted Answer

Inflation can be reduced by both announcing the policy and taking steps to ensure its credibility. Announcing the policy can help set expectations, while ensuring the policy's credibility can strengthen its effectiveness by making economic agents believe in the commitment to fighting inflation.

Inflation Can Be Reduced by