Inflation Can Be Reduced Sharply If the Government Is Willing

Multiple Choice

Inflation can be reduced sharply if the government is willing to

A) induce a deep recession by employing restrictive monetary policy
B) induce a shallow recession by employing restrictive fiscal policy
C) reduce income tax rates to stimulate aggregate supply
D) increase income tax rates but allow money supply to grow
E) gradually reduce money supply and cut taxes to stimulate growth