Which policy action is most likely to reduce inflation?

CA Foundation · Business Economics · RTP · September 2026
Which policy action is most likely to reduce inflation?
(A) (A) Expansionary monetary policy
(B) (B) Contractionary monetary policy
(C) (C) Lower reserve ratio
(D) (D) Higher government spending

Suggested Answer and Working Notes:

Correct Answer: Option (B)

Correct Option: (B)

Topics: Money Market

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