To control inflation, the monetary authorities of a country can

  • A reduce taxes
  • B advise the government to increase its expenditure
  • C engage in expansive monetary policies
  • D engage in restrictive monetary policies
jamb 2020economics

The correct answer is D. engage in restrictive monetary policies

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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