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Which of the following is a tool used by central banks to control inflation?

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Question: Which of the following is a tool used by central banks to control inflation?

Options:

  1. Increasing taxes
  2. Adjusting interest rates
  3. Regulating wages
  4. Controlling prices directly

Correct Answer: Adjusting interest rates

Solution: 

Central banks control inflation primarily by adjusting interest rates to influence economic activity.

Which of the following is a tool used by central banks to control inflation?

Practice Questions

Q1
Which of the following is a tool used by central banks to control inflation?
  1. Increasing taxes
  2. Adjusting interest rates
  3. Regulating wages
  4. Controlling prices directly

Questions & Step-by-Step Solutions

Which of the following is a tool used by central banks to control inflation?
No concepts available.
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