(1).by the withdrawal of rationing of credit ___is controlled.
(a).inflation
(b). deflation
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By the withdrawal of rationing of credit, inflation is controlled
• Option A is correct i.e. inflation
• Both inflation and rationing are correlated to each other.
• Inflation is an inescapable phenomenon and the presence of financial systems and credit markets in all frugalities makes credit rationing equally prevalent
• Credit rationing is a situation in which moneylenders are unwilling to advance additional funds to borrowers at the usual market interest rate
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