Question

Economics: To address a rise in inflation, a government may:

Answer 1

B reduce the amount of money it puts into circulation

Answer 2

Answer:

Reduce the amount of money put into circulation

Explanation:

If the government reduces the amount of money that they put, then this could bring down inflation as the dollar's value would increase.

If the government lowers interest rates, then this will encourage consumers to buy and spend.

If the government raises interest rates, then this would promote people not to buy and spend as things would be more expensive.

If the government invest in unemployment programs, then they are actually making inflation worse as they are putting into spending when they should be doing the opposite.