Central bank would be most effective in reducing inflation

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Reference no: EM13981041

Which of the following actions by a nation's central bank would be most effective in reducing inflation?

A. selling government securities in the open market

B. lowering margin requirements on purchases of financial securities

C. reducing the rate of interest it charges on loans to commercial banks

D. reducing reserve requirements on deposits held by commercial banks

Reference no: EM13981041

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