A period of inflation can be stopped by O A. increasing the growth rate of real output, to absorb consumer spending. O B. decreasing the money supply. O C. decreasing the interest rate, which causes aggregate demand to increase. O D. Answers A, B, and C all are correct. E. None of the answers are correct.

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: Money Growth And Intlation
Section: Chapter Questions
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A period of inflation can be stopped by
O A. increasing the growth rate of real output, to absorb consumer spending.
O B. decreasing the money supply.
O C. decreasing the interest rate, which causes aggregate demand to increase.
O D. Answers A, B, and C all are correct.
O E. None of the answers are correct.
Transcribed Image Text:A period of inflation can be stopped by O A. increasing the growth rate of real output, to absorb consumer spending. O B. decreasing the money supply. O C. decreasing the interest rate, which causes aggregate demand to increase. O D. Answers A, B, and C all are correct. O E. None of the answers are correct.
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