The central bank uses taxation in order to keep inﬂation close to the target rate.

Name: The central bank uses taxation in order to keep inﬂation close to the target rate.
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Question

Quizplus · Accepted Answer

The central bank primarily uses monetary policy tools such as adjusting interest rates and adjusting the money supply in order to keep inflation close to the target rate. While taxation can indirectly affect inflation, it is not a direct tool used by the central bank for this purpose.

The Central Bank Uses Taxation in Order to Keep Inﬂation