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Wednesday, 08 April 2026
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To control inflation, the monetary authorities of a country can

To control inflation, the monetary authorities of a country can
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Reduce taxes
  • B Advise the government to increase its expenditure
  • C Engage in expansive monetary policies
  • D Engage in restrictive monetary policies
Correct Answer: Option D
Explanation:
Governments can use a contractionary monetary policy to fight inflation by reducing the money supply within an economy through reduced bond prices and increased interest rates.

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