If the Index of Leading Indicators and Other Forecasting Devices

Multiple Choice

If the index of leading indicators and other forecasting devices suggested that the economy is moving into an inflationary boom, activists' economic policy would call for

A) a decrease in money supply growth and a tax increase.
B) an increase in money supply growth and a shift toward a budget deficit.
C) an increase in money supply growth and a tax decrease.
D) a continuation of the policies already in place.