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:
Explanation:
Overpopulation occurs when the species population rate exceeds the ecological niche.
I would say buying new equipment. Hope I could help! :)
AFRICANS Americans mate. A thanks would be appreciated.
Answer:
Explanation:
Philosophy tries to understand the reality in which we live in as well as our existence and what it means. Therefore, looking at it through as many perspectives as possible helps philosophers see the world through the eyes of different people whose experiences may affect the perspective drastically. These different data can be used and pieced together with their own philosophical ideas and views in order to come up with a new understanding of life.
