Which of the following strategies may have a net effect on inflation?
A) Decreasing interest rates and decreasing taxes
B) Proportionately increasing wages and increasing prices
C) Decreasing prices and decreasing taxes
D) Proportionately increasing prices and decreasing wages

Question

Quizplus · Accepted Answer

Inflation refers to rising prices. Inevitably this occurs with time. If we increase wages in the same proportion that we increase prices of goods and services, it will have a net effect because even though the cost of goods and services is rising, this is offset by the increase in wages.

Which of the Following Strategies May Have a Net Effect