Question

An increase in the bank rate is effective to combat inflation.state true or false?​

Answer 1

Answer:

· Such rate of increases in prices may be both slow and rapid. However, it is difficult to detect whether there is an upward trend in prices and whether this trend is sus­tained. That is why inflation is difficult to define in an unambiguous sense. Let’s measure inflation rate. Suppose, in December 2007, the consumer price index was 193.6 and, in December 2008.

Explanation:

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