Question

International & Economic Relations Unit Test
13 of 2513 of 25 Items
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 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.
The inflation rate will stabilize as the Federal Reserve enacts contractionary monetary policy.

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.
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Answer 1

The best response to describe the expected trend in the inflation rate after the Federal Reserve took action in 2022 is:

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

This answer reflects the common understanding that contractionary monetary policy typically aims to reduce inflation, although the effects of such policies may not be immediate and can take time to influence the inflation rate effectively.