Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

In an economy, prices are increasing. The government wants to prevent prices from rising any further. Which policies would it probably use?

  • Adecrease goods and services (sales) tax and put a quota on cheap imports
  • Bdecrease income tax and decrease interest rates
  • Cincrease interest rates and decrease government spending
  • Dwithdraw industry subsidies and impose a minimum wage

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