Inflation Control
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ECONOMICS
Monetary Policy
Inflation Control
The invisible tug-of-war between interest rates and inflation shapes everyday prices
7 days ago
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What is a primary trade-off central banks face when controlling inflation through interest rate adjustments?
Lowering interest rates always reduces inflation by increasing spending.
Raising interest rates can slow inflation but may also reduce economic growth and increase unemployment.
Inflation control is achieved solely by capping prices on goods and services.
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