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Which of these would deter inflation?

A) a decrease in interest rates
B) an increase in economic growth
C) an increase in consumer spending
D) a decrease in the price of securitie

2 Answers

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A decrease in the price of securities (A) would deter inflation.
User Jcaliz
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The correct answer to this question is alternative D) "A decrease in the price of securities."

Alternative A is wrong given the fact that increasing interest rates are one of the ways by which inflation can be overcome. Decreasing interest rates would help inflation.

Alternatives B and C are somewhat related, since with economic growth, consumer spending usually goes up. The problem with that is that reducing spending is actually the way to fight inflation.

That leaves us with alternative D being the correct one.

User Dani Herrera
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