WAEC Economics 2015 Objective — Question 42
Question 42 of 50 from the West African Examinations Council (WAEC) Economics 2015 Objective paper, with the correct answer and a full explanation.
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In order to control inflation, the government should
- A. reduce the cost of borrowing
- B. buy securities in the open market
- C. adopt restrictive monetary policyCorrect
- D. discourage savings
Explanation
To control (demand-pull) inflation, government adopts a restrictive/tight monetary policy, reducing money supply and available credit in the economy.
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