Which of the following actions is most likely to be taken by the Federal Reserve System in periods of rising inflation?

Question

Quizplus · Accepted Answer

To combat rising inflation, the Federal Reserve System is likely to reduce the rate of growth in the amount of money in circulation. This action is part of a tight monetary policy aimed at decreasing money supply to increase interest rates and slow down the economy, thereby reducing inflation.

Which of the Following Actions Is Most Likely to Be