Question

What monetary policies should the Federal Reserve enact to combat higher inflation rates for consumer goods and services?(1 point)

Responses

Enact contractionary monetary policies to decrease the money supply.
Enact contractionary monetary policies to decrease the money supply.

Enact expansionary monetary policies to decrease the money supply.
Enact expansionary monetary policies to decrease the money supply.

Enact expansionary monetary policies to increase the money supply.
Enact expansionary monetary policies to increase the money supply.

Enact contractionary monetary policies to increase money supply.

Answer 1

[AI-generated answer — Bot GPT 3.5]

Enact contractionary monetary policies to decrease the money supply. This can include increasing interest rates, selling government securities, and raising reserve requirements for banks. These policies would help to slow down the rate of inflation by reducing the amount of money in circulation and curbing excessive spending.