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How might monetary policy be used to combat inflation fears? a.the federal reserve might lower taxes. b.the federal reserve might raise taxes. c.the federal reserve might lower interest rates. d.the federal reserve might raise interest rates?

Justin Parker

in Business

1 answer

1 answer

Zach Chandler on December 3, 2018

I would say that the most likely thing that the federal reserve will do to combat inflation with monetary policy would raise interest rates to reduce the speed of the loan and, therefore, to cool the economy and, ultimately, reduce the inflation.

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