Question

Which of the following best describes the expected trend in the inflation rate after the Federal Reserve took action in 2022?(1 point)
Responses

The inflation rate will continue to grow in 2023 and 2024 as monetary policy targets a nine percent inflation rate.
The inflation rate will continue to grow in 2023 and 2024 as monetary policy targets a nine percent inflation rate.

The inflation rate will slowly decrease over 2023 and 2024 as the changes in monetary policy occur slowly.
The inflation rate will slowly decrease over 2023 and 2024 as the changes in monetary policy occur slowly.

The inflation rate will continue rising in 2023 as GDP continues growing in 2022.
The inflation rate will continue rising in 2023 as GDP continues growing in 2022.

The inflation rate will stabilize as the Federal Reserve enacts contractionary monetary policy.

Answer 1

The best description of the expected trend in the inflation rate after the Federal Reserve took action in 2022 is:

**The inflation rate will stabilize as the Federal Reserve enacts contractionary monetary policy.**

This response reflects the typical expectation that contractionary monetary policy, such as raising interest rates, is intended to control inflation and bring it down toward target levels.