Question

Which of the following measures should be taken when an economy is going through inflationary pressures?

1. The direct taxes should be increased. 

2. The interest rate should be reduced. 

3. The public spending should be increased

Select the correct answer using the code given below:

(a) 1 only 

(b) 2 only 

(c) 2 and 3 

(d) 1 and 2

Answer 1

The correct option is: (b) 2 only