The economy's unemployment rate is 10% and the inflation rate is 1%. The most appropriate policy for the Chancellor of the Exchequer ask the Bank of England to pursue would be to

Select one:

a.

do nothing because the inflation rate is so low.

b.

raise interest rates to try to stimulate saving.

c.

increase the money supply to try to reduce the unemployment rate.

d.

reduce the money supply to try to bring the inflation rate to zero