In the face of an increase in oil prices,if the government's primary objective is to keep prices from falling,then policymakers should
A)reduce taxes.
B)reduce the money supply.
C)increase government spending.
D)increase aggregate supply through regulation.

Question

Quizplus · Accepted Answer

Reducing the money supply can help keep prices from falling by decreasing inflationary pressures, making it a suitable policy if the government's primary objective is to prevent a decrease in prices. This approach can help stabilize the economy by controlling the amount of money circulating, which can influence overall demand and price levels.

In the Face of an Increase in Oil Prices,if the Government's