Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

The table indicates changes in economic policies for four countries, A, B, C and D. Which country is most likely to be pursuing a policy of preventing deflation?

  • Amoney supply decreasing; government spending decreasing; taxation decreasing
  • Bmoney supply decreasing; government spending decreasing; taxation increasing
  • Cmoney supply increasing; government spending increasing; taxation decreasing
  • Dmoney supply increasing; government spending increasing; taxation increasing

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