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How might monetary policy be used to combat inflation fears

2 Answers

4 votes

Answer:

D.

Step-by-step explanation:

The Federal Reserve might raise interest rates.

User Utyi
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In general, a stimulative monetary policy can increase economic growth and reduce unemployment, but may increase inflation. ... A restrictive monetary policy may be used to slow economic growth in order to reduce inflationary fears. -A stimulative-monetary policy may result in higher inflation.
User Fargho
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