To slow down a high inflation rate, the Federal Reserve should use a(n) _____ monetary policy by using open market _____.

Question

Quizplus · Accepted Answer

To slow down high inflation, the Federal Reserve must use a restrictive monetary policy. This can be achieved by open market sales, which decrease the money supply in the economy, leading to a decrease in aggregate demand and therefore a decrease in inflation.

To Slow Down a High Inflation Rate, the Federal Reserve