-
Which one of the following is the act of stimulating the economy by increasing the money supply or by reducing taxes ?
-
- Disinflation
- Reflation
- Inertial inflation
- Inflation hedge
Correct Option: B
Reflation is the act of stimulating the economy by increasing the money supply or by reducing taxes, seeking to bring the economy (specifically price level) back up to the long-term trend, following a dip in the business cycle.
