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3.1.3 Quiz: Macroeconomic Goals
Question 6 of 10

A government has stopped printing money and has directed its national banks to limit new loans to increase the amount of currency held in reserve. The government's goal is to reduce the amount of money available to keep the value of its currency from dropping.

Which macroeconomic goal is this government trying to achieve?

A. Reducing inflation
B. Decreasing per capita GDP

Answer :

Final answer:

The government's goal is to reduce inflation by limiting the amount of money available.


Explanation:

The government's goal in this scenario is to reduce inflation. By stopping the printing of money and limiting new loans, the government is reducing the amount of money available, which will help keep the value of its currency from dropping.


Learn more about Reducing inflation here:

https://brainly.com/question/30108894


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