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JAMB Economics 1980 Question 47

Question 47

Money and Inflation

Which of the following is NOT a measure for controlling inflation?

  1. A.Reduction in money supply
  2. B.Wage restraint and wage freeze
  3. C.Reduction in taxes and increase in government spending
  4. D.Price control
  5. E.Credit restriction.
Show the answer and explanation

Answer: C (Reduction in taxes and increase in government spending)

Explanation

Cutting taxes and raising government spending increase demand, which would make inflation worse.