If inflation is the major problem in an economy, which of the following would be an appropriate monetary policy response?

Question

Quizplus · Accepted Answer

The sale of government bonds is a monetary policy tool used by central banks to reduce the money supply in an economy, which can help to combat inflation. By selling government bonds, the central bank takes money out of circulation, which can help to reduce inflationary pressures.

If Inflation Is the Major Problem in an Economy, Which