Economics · Reflation
What is the economic concept of reflation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A sudden contraction of the money supply aimed at lowering real production outputs.
- 2An uncontrolled decrease in national income and price levels leading to systemic deflation.
- 3The act of stimulating the economy by increasing the money supply or reducing taxes to expand output and curb deflationary pressures.✓
- 4A structural adjustment program that permanently limits international trade and foreign direct investments.
Correct answer
The act of stimulating the economy by increasing the money supply or reducing taxes to expand output and curb deflationary pressures.
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