Dear money policy is followed to ________.

check inflation

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to reserve depression

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to appease the public

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to increase disposal income of the households

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Solution

The correct option is A check inflation
Dear money policy refers to a monetary policy by the central bank where the central bank sets high interest rates so that credit is not easily available to the general public in order restrict the flow of credits in the economy. Such a policy is used by the government to check inflation in the economy.

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