Which of the following is a monetary policy intended to rein in inﬂation?
A) increase the money supply to shift the aggregate demand curve rightward
B) reduce interest rates to increase investment spending
C) reduce the interest paid on banks' reserves
D) decrease the money supply to shift the aggregate demand curve leftward

Question

Quizplus · Accepted Answer

Decreasing the money supply will lead to a decrease in spending and shift the aggregate demand curve leftward, which can help reduce inflationary pressures.

Which of the Following Is a Monetary Policy Intended to Rein