During times of inflation, which of the following is done by the Fed?

Question

Quizplus · Accepted Answer

During times of inflation, the Fed typically decreases the money supply in order to reduce the amount of money circulating in the economy and to make it less available for spending, which can help to curb inflation. Passing a budget that cuts the deficit, increasing the balance of trade, and offering tax breaks for certain economic activity are all potential ways to address economic issues, but they may not directly address inflation.

During Times of Inflation, Which of the Following Is Done