Government can help control inflation through which of these?
A) Effectively raising prices
B) Increasing consumer spending
C) Effective monetary policies
D) Effective fiscal policies
E) Both C and D

Question

Quizplus · Accepted Answer

Effective monetary policies and effective fiscal policies are both tools that the government can use to help control inflation. Monetary policy involves adjusting interest rates and the money supply, while fiscal policy involves adjusting government spending and taxes. By using both of these tools effectively, the government can help control inflation and keep prices stable. Option A is incorrect, as raising prices would only exacerbate inflation. Option B is also incorrect, as increasing consumer spending could actually lead to higher inflation if demand for goods and services outstrips supply.

Government Can Help Control Inflation Through Which of These