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Temporary control of inflation can be affected by
Increasing the prices
Increasing the taxes
Restraint on the growth of money supply
Reducing the prices
In the case of temporary inflation, central bank generally attempts to reduce the money supply in the economy so as to ease the demand pressure. This helps in arresting price rise in the economy. The money supply is reduced by raising the cost of and by reducing the availability of money and credit in the economy.
By: Kamal Kashyap ProfileResourcesReport error
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