The process of curing inflation by reducing money supply is called
Options:
A . Down–pull inflation
B . Reflation
C . Disinflation
D . Cost-push inflation
Answer: Option C Answer: (c)The process of curing inflation by reducing money supply is called disinflation. Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the price level of goods and services in GDP. Disinflation occurs when the increase in the “consumer price level” slows down from the previous period when the prices were rising.
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