Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

The central bank of Mexico adjusts its interest rate in an effort to limit the increase in the general price level to only $3\%$. Which government aim was it directly trying to achieve?

  • Abalance of payments equilibrium
  • Beconomic growth
  • Cfull employment
  • Dlow inflation

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