The Federal Reserve Board would address a sudden rise in the inflation rate by __________.

Question

Quizplus · Accepted Answer

The Federal Reserve Board would address a sudden rise in the inflation rate by raising interest rates. This action would make borrowing more expensive, reducing the amount of money in circulation, and thus curbing inflation. Balancing the budget, implementing a flat tax, or decreasing government spending could have an impact on inflation in the long term, but these measures are not immediate solutions to a sudden rise in inflation.

The Federal Reserve Board Would Address a Sudden Rise in the Inflation