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Basic of Economicseconomics-mcqs › basic-of-economics
Published
26 May 2019
Last updated
28 May 2026

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Which of the following government actions can help lower inflation?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

Choose the correct answer

Explanation

Option A involves increasing credit availability, which can stimulate demand and potentially raise inflation. Option B, raising import tariffs, may increase prices on goods. Option C, decreasing government expenditure, can reduce overall demand in the economy, thus helping to control inflation. Option D indicates none of the above, which is incorrect in this context.

Practice related questions from the same subject.

  1. 1.Which of the following best describes deflation?
  2. 2.Under what condition can two nations benefit from engaging in international trade?
  3. 3.Which of the following represents a legitimate form of currency?
  4. 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
  5. 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

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