Question
There are different policy tools that countries can use to solve macroeconomic problems. Consider the following case. The United States is experiencing inflation rate that
There are different policy tools that countries can use to solve macroeconomic problems. Consider the following case. The United States is experiencing inflation rate that is too loow and would like to resort to a policy to increase it. Among the policies listed below, identify the appropriate action that needs to be taken.
A.Buy Treasury bonds and simultaneously reduce interest rate.
B. Find a policy to revalue the dollar. For instance, implement an contractionay monetary policy.
C. Convince the Congress to reduce tax rates.
D. Exchange foreign currencies for U.S. dollars in the FX market.
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