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.-
• D)The Federal Reserve should raise interest rates.

---

Definitions:

Economic Development

The process through which a nation improves the economic, political, and social well-being of its people.

Saving and Investment

The act of setting aside income for future use and the use of those savings for purchasing capital goods or financial assets.

Productivity of Labor

The measure of output per worker or per hour worked, indicating how effectively labor inputs are converted into goods or services.

Labor Supply

The total number of people available to work, either already employed or actively looking for work.