Which of the Following Is a Possible Cure for Ongoing

question 14

Multiple Choice

Which of the following is a possible cure for ongoing inflation?

• A) The Fed could pursue anti-cyclical monetary policy.
• B) The Fed could increase money supply whenever the AD curve shifts to the right.
• C) The Fed could maintain a constant interest rate target regardless of economic circumstances.
• D) The Fed could always try to keep the unemployment rate below the natural rate.
• E) The Fed could pursue anti-cyclical fiscal policy.