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WAEC Economics 2020 Question 37

Question 37

Money and Inflation

Governments in West Africa can curtail inflation by

  1. A.purchasing securities in the open market.
  2. B.selling securities in the open market.
  3. C.encouraging importation of goods from all countries.
  4. D.encouraging banks to lend for consumption.
Show the answer and explanation

Answer: B (selling securities in the open market.)

Explanation

Selling securities takes money out of circulation and reduces spending.