Question

What monetary policies should the Federal Reserve enact to combat higher inflation rates for consumer goods and services?(1 point) Responses Enact expansionary monetary policies to increase the money supply. Enact expansionary monetary policies to increase the money supply. Enact expansionary monetary policies to decrease the money supply. Enact expansionary monetary policies to decrease the money supply. Enact contractionary monetary policies to increase money supply. Enact contractionary monetary policies to increase money supply. Enact contractionary monetary policies to decrease the money supply.

Answer 1

[AI-generated answer — Bot GPT 3.5]

Enact contractionary monetary policies to decrease the money supply. This can be done through increasing interest rates, selling government securities, and decreasing the money supply to reduce inflation rates for consumer goods and services. By tightening monetary policy, the Federal Reserve can help slow down economic growth and reduce inflationary pressures.