What is the plan of action to be taken against the Deflation?
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Answer:
Monetary Policy:
To control deflation, the central bank can increase the reserves of commercial banks through a cheap money policy. They can do so by buying securities and reducing the interest rate.
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Answer:
Deflation can be controlled by adopting monetary and fiscal measures in just the opposite manner to control inflation.
Explanation:
Fiscal Policy
Monitary policy
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