To promote economic growth, countries would most likely act so that inflation (1 point) Select one: a. is eliminated b. remains at a high level c. remains at a low level d. is a negative number

Respuesta :

To promote economic growth, countries would most likely act so that inflation "remains at a low level".

Answer: Option c

Explanation:

The Central Bank and the government basically command Inflation or either of them. The monetary policy is helpful from its changing interest rates parameters . Although there are a different types of tools which can control inflation are as follows

Monetary policy: The demand in the economy is reduced by higher interest rates, and result into lower economic growth with lower inflation.

Commanding supply of money: Monetarists debt huge by setting a close bond between the inflation and money supply.

Supply-side Policies: The scheme to hike the efficiency of the economy and competitiveness by declining pressure on long-term costs.

Fiscal policy: The reduction of spending, demand and inflationary pressures resulted from a higher rate of income tax.

Wage controls: Inflationary pressures can be reduced by controlling wages  , but after 1970 such act is rarely performed.