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Decreasing the money supply ( by government) increasing the tax through monetary policy. This is applicable in case of demand pull inflation. where the demand is more than the suppliers capacity to produce it. It is because making the new goods or service will relatively increases the opportunity cost.
There are different types of inflation depending upon the country's economy. so, controlling may vary.
What else can I help you with?
What are the objectives of price control in nigeria?
to control inflation
What is the range of hyper inflation?
Hyperinflation is an extremely rapid or out of control inflation and there is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless.
Keynesian solution to rising inflation?
to control inflation govt takes necessary steps 1 control high prices 2 issue low level of currerncy
When your country is experiencing inflation the government may try to control it by?
Yes government tries to control the inflation by increasing the supply into the market, this balances the demand supply curve
What is walking inflation?
Walking inflation: When the price rise is moderate (is in the range of 3 to 7 %) and the annual inflation rate is of a single digit, it is called walking inflation. It is a warning signal for the government to control it before it turns into running inflation.
How does Brazil control inflation?
by controlling growth of money supply
Are those costs which firm has no control?
Costs which are affected by inflation
When using fiscal policy the government will do just the opposite to control inflation than it does to control?
recession..A+
How do monetary policy control inflation?
Monetary policy can have an impact of inflation. The ideal state of the economy is a balance between inflation and unemployment at 4.3% which is only seen in a wartime economy.
Raising taxes can help control inflation because?
Inflation is too much money chasing too few goods. If the new revenue from raising taxes is used to pay down debt, raising taxes can help control inflation by reducing discretionary income.
Was the ATM the answer to inflation?
No. The ATM does not in any way affect or answer inflation. It is just a machine through with customers can do banking transactions without visiting their bank. It does not cause or affect inflation. Only the country's central bank can control inflation by changing regulatory policies.
Why did the US government decide to create inflation?
The question cannot be answered because it gives no time frame. Plus, another factor in inflation is that many times inflation cannot be held under control.
