To keep high inflation from eroding the value of money, monetary authorities in the United States:

Question

Quizplus · Accepted Answer

To combat high inflation, monetary authorities in the US typically resort to controlling the supply of money in the economy. By adjusting interest rates and modifying reserve requirements for banks, the Federal Reserve can influence the amount of money that is available to be spent in the economy. This, in turn, can help regulate inflation and prevent the erosion of the value of money. Options A, B, and C are not directly related to controlling the supply of money and are not effective measures to combat inflation.

To Keep High Inflation from Eroding the Value of Money