what did the federal reserve do to try to reduce inflation? it allowed interest rates to fall. it allowed…
what did the federal reserve do to try to reduce inflation? it allowed interest rates to fall. it allowed interest rates to rise. it instituted price controls.
Answer
Answer:
It allowed interest rates to rise.
Brief Explanations:
The Federal Reserve can use monetary - policy tools to combat inflation. One common approach is to increase interest rates. Higher interest rates make borrowing more expensive, which can reduce consumer and business spending, thereby curbing inflation. Allowing interest rates to fall would likely stimulate more spending and potentially increase inflation. The Federal Reserve does not typically institute price controls as a main tool to fight inflation.