Inflation can be contained by
A)surplus budget
B)increase in taxation
C)reduction in public expenditure
D)all these three measures

Question

Quizplus · Accepted Answer

All these measures can help contain inflation. A surplus budget implies the government is spending less than it earns, which can reduce the total money supply in the economy. Increasing taxation can decrease consumers' disposable income, leading to reduced spending. Reduction in public expenditure directly cuts down the amount of money the government is injecting into the economy, which can also help in controlling inflation.

Inflation Can Be Contained by