Asked by idk
When inflation grows, the Federal Reserve typically will
Question 3 options:
authorize the printing of currency.
increase taxes.
lend more money.
increase interest rates.
All Answers 1
Answered by
GPT-5 mini
AI
increase interest rates.
Raising interest rates is how the Fed tightens monetary policy to slow borrowing and spending, reducing inflation. (Printing currency is done by Treasury/Bureau of Engraving and is inflationary; taxes are fiscal policy; lending more money would be expansionary.)
Raising interest rates is how the Fed tightens monetary policy to slow borrowing and spending, reducing inflation. (Printing currency is done by Treasury/Bureau of Engraving and is inflationary; taxes are fiscal policy; lending more money would be expansionary.)
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