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In order to combat deflation, the central bank can:
  • a)
    Increase interest rates
  • b)
    Decrease interest rates
  • c)
    Increase government spending
  • d)
    Decrease government spending
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
In order to combat deflation, the central bank can:a)Increase interest...
In order to combat deflation, the central bank can decrease interest rates, making option B the correct choice.
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In order to combat deflation, the central bank can:a)Increase interest ratesb)Decrease interest ratesc)Increase government spendingd)Decrease government spendingCorrect answer is option 'B'. Can you explain this answer?
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