Which of the Following Strategies Does Monetary Policy Dictate in Inflationary

question 2

Multiple Choice

Which of the following strategies does monetary policy dictate in inflationary periods?

• A)Congress should increase spending.
• B)Congress should raise taxes on citizens.
• C)The Federal Reserve should lower interest rates.-Consider This: A decrease of interest rates makes the borrowing of money cheaper,thereby increasing the amount of money in the economy.
• D)The Federal Reserve should raise interest rates.

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