A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Feb/Mar 2021 · Q281 Mark
The table shows the consumer prices index (CPI) for an economy expressed as an index number. year CPI 2016 100 2017 103 2018 101 2019 97 Which action is the government most likely to take to achieve price stability?
Aappreciate the exchange rate
Bdecrease the budget deficit
Cincrease the money supply
Dincrease the rate of interest
✓ Correct answer
C: increase the money supply
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