In 2018, several European countries were faced with the problem of increasing inflation. At the same time,

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In 2018, several European countries were faced with the problem of increasing inflation. At the same time, unemployment was low, which led to an increase in real wages. If the European Central Bank (ECB) wanted to cut inflation, which of the following would do it? Explain your answer.

a. Decrease the required reserves ratio

b. Increase the interest rate

c. Sell government bonds

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Principles Of Macroeconomics

ISBN: 9781292303826

13th Global Edition

Authors: Karl E. Case,Ray C. Fair , Sharon E. Oster

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