Which of the following measure will NOT serves as a control during inflation period?

Step 1: Analyze the question We need the measure that would NOT help control inflation. Inflation is a persistent rise in the general price level, usually caused by too much money chasing too few goods (demand-pull) or by rising costs. Control measures aim to reduce total spending or money in circulation (contractionary policy).

Step 2: Concept

• Fiscal policy tools against inflation: raise taxes, cut government spending.
• Monetary policy tools against inflation: raise bank/interest rates, reduce money supply (sell securities, raise cash reserve ratio).

Step 3: Check each option

• A. Increase in personal income tax: reduces disposable income, so people spend less and demand falls. It controls inflation.
• B. Increase in bank rate and interest: makes borrowing costly, so credit and spending fall. It controls inflation.
• C. Increase in government capital expenditure: raises government spending, injecting more money into the economy and boosting aggregate demand. It does not control inflation and can worsen it.
• D. Reduction in money supply: less money chasing goods, so price pressure falls. It controls inflation.
• E. Reduction in government recurrent expenditure: cuts government spending, lowering demand. It controls inflation.

Step 4: Answer The measure that will NOT control inflation is the increase in government capital expenditure, which is option C.

Tip: For "control inflation" questions, remember: Inflation = cut spending, cut money, raise taxes, raise interest. Any option that increases spending or money supply is the odd one out. (For deflation or recession, it is the reverse.)