WAEC Economics 2014 Objective — Question 9
Question 9 of 50 from the West African Examinations Council (WAEC) Economics 2014 Objective paper, with the correct answer and a full explanation.
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To control inflation, the central bank of a country may adopt
- A. an expansionary monetary policy
- B. a restrictive monetary policyCorrect
- C. an increased wage policy
- D. a deficit financing policy
Explanation
Restrictive monetary policy is the policy that can be used to reduce excess cash from circulation. This will reduce the money supply and reduce people's purchasing power.
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