What policy action would the Bangko Sentral ng Pilipinas (BSP) most likely take to reduce inflation?
A. Lower income taxes
B. Increase government spending
C. Raise interest rates
D. Increase subsidies

Question

What policy action would the Bangko Sentral ng Pilipinas (BSP) most likely take to reduce inflation?
 A. Lower income taxes
 B. Increase government spending
 C. Raise interest rates
 D. Increase subsidies

Sefton · Answer

The correct answer is C. To fight inflation, central banks like the BSP usually raise interest rates. This makes loans more expensive, discouraging people and businesses from borrowing and spending too much. As demand slows, prices are likely to stop rising quickly. In 2023, the BSP raised its policy rate several times to tame inflation caused by high fuel and food prices.

Answered by Sefton | 2025-05-26

What policy action would the Bangko Sentral ng Pilipinas (BSP) most likely take to reduce inflation? A. Lower income taxes B. Increase government spending C. Raise interest rates D. Increase subsidies

Answer (1)

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What policy action would the Bangko Sentral ng Pilipinas (BSP) most likely take to reduce inflation?
A. Lower income taxes
B. Increase government spending
C. Raise interest rates
D. Increase subsidies

[Sagot para sa’yo] Sources of Information to Find Work

[Sagot para sa’yo] Give an example of a cultural symbol that represent Filipino identity. Explain why you consider it as a cultural symbo