The correct answer is B.
If aiming to reduce inflation, the Federal reserve needs to decrease the money supply, which means reducing the amount of money in circulation in the economy. This is denominated a contractionary monetary policy.
If the money supplied decreases, the cost of borrowing (the cost of money) increases due to its increased relative scarcity. This, in turn, discourages borrowing, and produces a lower income, and a drop in demand, production, and employment. Therefore, it causes the economy to shrink as mentioned in the question.
<u>As spending drops, so do prices and therefore inflation. </u>
Such a strategy is only implemented when there are inflationary preassures, as it also brings important side effects in terms of output.
Answer:
my favorite beverage is cream soda.
Explanation:
People are known to possess some measures of powers. The powers that daemons have in a discovery of witches is that they hhave a measure of supernatural power.
<h3>What role did daemons play in a discovery of witches?</h3>
Based on the description in the official website set for Deborah Harkness work titled All Souls Trilogy, daemons are known to be people who are creative, they are artistic creatures who ware caught between madness and genius.
The emphasized that Daemons are known to live a life that is chaotic but they still do show great affection for people that share their ideals around them.
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