What actions might a government take in order to reduce the rate of inflation in the economy?

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Issue:

Miscellaneous

 

Written by:

Latoya R

 

Date added:

December 28, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 923

 

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6669 times

 

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Essay content:

Increased mortgage costs will also reduce market demand in the housing market ? Business investment may also fall, as the cost of borrowing funds will increase. Some planned investment projects will now become unprofitable and, as a result, aggregate demand will fall. ? Higher interest rates could also be used to limit monetary inflation...
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Increased mortgage costs will also reduce market demand in the housing market ? Business investment may also fall, as the cost of borrowing funds will increase. Some planned investment projects will now become unprofitable and, as a result, aggregate demand will fall. ? Higher interest rates could also be used to limit monetary inflation...
displayed 300 characters

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