Answer:
personally i prefer 5sos
Explanation:
Answer:
5 sos
Explanation:
Answer:
1) B
2) D
Explanation:
I'm not completely sure about #2 but 1 is for sure correct so i hope it helped
The correct answer is B.
If aiming to reduce inflation, the Federal reserve needs to decrease the money supply, which means reducing the amount of money in circulation in the economy. This is denominated a contractionary monetary policy.
If the money supplied decreases, the cost of borrowing (the cost of money) increases due to its increased relative scarcity. This, in turn, discourages borrowing, and produces a lower income, and a drop in demand, production, and employment. Therefore, it causes the economy to shrink as mentioned in the question.
As spending drops, so do prices and therefore inflation.
Such a strategy is only implemented when there are inflationary preassures, as it also brings important side effects in terms of output.
To control or reduce inflation, the Federal Reserve decreases the money supply. This increase in the purchasing power of the dollar reduces inflation but may also cause the economy to shrink due to less money available for spending and investment.
To reduce inflation, the Federal Reserve decreases the money supply. By limiting the amount of money in circulation, the purchasing power of the dollar increases, leading to a reduction in inflation. However, this can also cause the economy to shrink as it restricts economic growth, because less money is available for consumer spending and investment.
Looking at it from another angle: If the Federal Reserve increases the money supply, it has the potential to spark inflation, because there is more money chasing the same quantity of goods and services. Therefore, to control or reduce inflation, the Federal Reserve actually decreases the money supply.
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B.Fiscal policy
C.Monetary policy
1.The government goes into debt to buy a large number of vehicles for the military.
2. The government limits the number of foreign cars that can be sold in the United States.
3. The government decreases the intrest rate on loans charged to car companies.
if anyone has the other version its
Protectionist policy - a high tax on cars imported from other countries
Fiscal policy - reduced taxes on corporate profits
Monetary policy - increased interest rates on loans