Inflation can be managed by lowering interest rates whenever the economy starts to heat up,keeping inflation at 0 to 2 percent.

Question

Quizplus · Accepted Answer

Lowering interest rates typically stimulates economic activity by making borrowing cheaper, which can actually increase inflation rather than manage or reduce it. To combat high inflation, central banks often raise interest rates to cool down the economy.

Inflation Can Be Managed by Lowering Interest Rates Whenever the Economy