The question asks for a MONETARY instrument to close the inflationary gap. Reduction in availability of credit is a contractionary monetary measure. Options C and D are fiscal measures. Option A worsens inflation.
CUET UG 2022 — Economics Macro
Identify the monetary invention that can Close the inflationary group:
Verified 13 Jul 2026.
Lowering of the bank rate
Reduction in availability of credit
Cut back on government spending
An increase in taxes
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