If there is a major increase in economic activity, an appropriate policy for government would be to:
A) encourage individuals to save more
B) increase the budget surplus
C) tighten up monetary policy
D) all of these

Question

Quizplus · Accepted Answer

A major increase in economic activity can lead to inflationary pressures. Encouraging savings, increasing the budget surplus, and tightening monetary policy can all help to cool down the economy and control inflation.

If There Is a Major Increase in Economic Activity, an Appropriate