What is a primary tactic used by central banks to combat inflation?

Name: What is a primary tactic used by central banks to combat inflation?
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

Raising interest rates is a primary tactic used by central banks to combat inflation as it makes borrowing more expensive, reduces spending and slows down economic growth, which helps to cool down inflationary pressures. It also leads to higher savings and encourages people to save more, which reduces the demand for goods and services and helps to reduce prices.

What Is a Primary Tactic Used by Central Banks to Combat