Multiple Choice
When an increase in aggregate demand causes higher inflation, the central bank should _____ to bring inflation back to the target level.
A) increase interest rates
B) restrict exports
C) increase the money supply
D) manage the exchange rate
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q39: If wage growth is greater than inflation,
Q40: Which of the following is likely to
Q41: The UK in?ation target is _.<br>A) 0.5
Q42: An economy's potential GDP is fixed; it
Q43: Which of the following correctly explains why
Q45: Extreme Keynesians believe that all markets adjust
Q46: For an economy which is facing an
Q47: If output gap in an economy declines
Q48: The short-run Philips curve shifts downwards when
Q49: Which of the following would cause an