The economy is currently experiencing high inflationary pressure with low unemployment and steady GDP growth. Which of the following would be a plausible course of action?(1 point)
Responses
Congress should use fiscal policy to lower taxes and encourage spending
Congress should use fiscal policy to lower taxes and encourage spending
The Federal Reserve should use fiscal policy to raise interest rates to encourage spending
The Federal Reserve should use fiscal policy to raise interest rates to encourage spending
Congress should buy government bonds to increase the money supply using monetary policy
Congress should buy government bonds to increase the money supply using monetary policy
The Federal Reserve should use monetary policy and raise the reserve requirement, decreasing the money supply