Question

A government that wants to keep prices stable would most likely take which

action?
A. Eliminate employment programs for poor citizens
B. Reduce productivity to decrease the per capita GDP
C. Borrow money from foreign governments
o o
D. Decrease the money supply to slow the rate of inflation

Answer 1

decrease the money supply is the right answer

Step-by-step explanation:

Answer 2

D

Step-by-step explanation:

By decreasing the money supply you will naturally lower the rate of inflation. Assuming demand for the product remains the same over time you will see the prices for products stabilize as they no longer need to be adjusted for inflation.