4
QuizMultiple Choice

The Federal Reserve

Question 4 • FL-2106010-M/J Civics B

To counter inflation the Federal Reserve makes __________ available.

Answer
A
less money
B
more money
C
lower interest rates
D
more government loans

Explanation

To counter inflation, the Federal Reserve uses contractionary monetary policy to slow spending and reduce upward pressure on prices. It makes less money available in the economy, so the correct choice is “less money.”

AI-written and checked against the verified answer.

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