To stop a demand-pull inflation using monetary policy, you would recommend that the Fed
A. increase the quantity of money.
B. not increase the quantity of money.
C. increase tax rates.
D. purchase government bonds in the open market.
Answer:B
To stop a demand-pull inflation using monetary policy, you would recommend that the Fed
A. increase the quantity of money. B. not increase the quantity of money. C. increase tax rates. D. purchase government bonds in the open market.