WAEC Economics 2020 Objective — Question 37
Question 37 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.
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Governments in West Africa can curtail inflation by
- A. purchasing securities in the open market
- B. selling securities in the open marketCorrect
- C. encouraging importation of goods from all countries
- D. encouraging banks to lend for consumption
Explanation
Selling securities in the open market (open market operations) reduces the money supply in circulation, helping to curb/curtail inflation.
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