Which of the following Actions should the ccntr.il bank take if monetary authori

Question

Which of the following Actions should the ccntr.il bank take if monetary authorities want to reduce the supply of money to slow the rate of inflation? Increase taxes, reducing costs and causing prices to fall Buy government bonds, reducing money supply, increasing interest rates, and slowing aggregate demand. Sell government bonds reducing money supply increasing interest rates and slowing aggregate demand. Decrease the discount rate lowering interest rates and causing both costs and prices to fall.

Explanation / Answer

Option C as by doing this the money supply in the market will come down

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