Question

Which of the following measure will helping checking inflation? (a) Monetary controls (b) Increase public expenditure (c) Increase in investments (d) Devaluation

Answer 1

Inflation is considered to be a complex situation for an economy. If inflation goes beyond a moderate rate, it can create disastrous situations for an economy; therefore is should be under control.

It is not easy to control inflation by using a particular measure or instrument.

The main aim of every measure is to reduce the inflow of cash in the economy or reduce the liquidity in the market.