Question

Which combination of Federal Reserve and Congressional actions would be best to fight inflation?

Answer 1

Answer

It's C

Explanation:

Answer 2

The best combination of Federal Reserve and Congressional actions to best fight inflation could be this one.

The  Congress can approve the raise of taxes and cut government spending. Meanwhile, the Federal Reserve raises interest rates. The Federal Reserve controls the monetary policy. So this combination would be the best to fight inflation, which is a rise in the general level of prices in the country.

Another monetary policy by the Federal Reserve to fight inflation is to sell bonds to commercial Banks, increasing the interest that is paid to banks on reserves. The Congress and the president must be aware of these measures because they are the elements of the government that can make fiscal policies decisions.