Business, 02.01.2021 18:30 babygirl123468

state four measures that may be taken by the government to control inflationstate formations that taken by the government to contain inflation

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Answer from: dayaan009

see below

Explanation:

The government takes contractionary measures to check against rising inflation. Contractionary policies reduce liquidity in the market, thereby reducing the rate of money circulation.

Four measures that may control inflation include

1. Increasing interest rates: An increase in interest rates increases the cost of borrowing money. When the cost of money becomes expensive, firms and households reduce the borrowing rate, reducing the money supply rate. In turn, the inflation rate declines.

2. Increasing reserve requirement: Reserve is the proposition of customer discounts that commercial banks are expected to maintain at their custody at all times. Increasing the reserve requirement means banks will reduce lending, thereby reducing the money supply in the economy.

3. The open market sells: The government makes available many treasury bills and bonds for purchase in the market. It offers attractive rates that encourage banks and other institutions to buy them. Buying the treasury bills means banks will use a substantial percentage of customer deposits on treasury bills other than lending to customers. Open market sales mop up excess liquidity in the markets, reducing the rate of cash circulation.

4. Reduction of government spending: Government spending is a fiscal policy tool. The government is a big spender in an economy. If the level of spending is decreased, the money supply in the economy is reduced.

Answer from: Quest

d. low interest rates

Answer from: Quest

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

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