Which reference to inflation in India, which of the following stateme...

UPSC Prelims 2015 Economy

Which reference to inflation in India, which of the following statements is correct?

Explanation

Option A and B are incorrect: RBI plays a key/primary role in controlling inflation through its monetary policy. Option C is correct: Decreased money circulation can help control inflation, while increased circulation can contribute to it. Option D is incorrect: Increased money supply shall only increase inflation.

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