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Home / Questions / Q 1426
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The process of curing inflation by reducing money supply is called ___

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| The process of curing inflation by reducing money supply is called ______.

A. Disinflation

B. Down-pull inflation

C. Cost-push inflation

D. Reflation

Right Answer is: A

SOLUTION

The process of curing inflation by reducing money supply is called Disinflation.

• Disinflation is a temporary slowing of the pace of price inflation.

• It is used to describe instances when the inflation rate has reduced marginally over the short term.

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    1. The process of curing inflation by reducing money supply is called ___

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