According to the tenets of monetary theory, which of the following is a prescription for reducing inflation?
A. If less money is available, price increases will slow and the inflationary spiral will end.
B. Credit can be eased by lowering interest rates, thus allowing the supply of money to grow quickly.
C. Increased federal spending will spur economic expansion, reduce unemployment, and increase personal spending.
D. Reduced federal taxes will give consumers more buying power.
Answer: A
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What will be an ideal response?
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