Read the following scenario. the national economy has been growing at a steady pace. there is an influx of money in the market, causing a devaluation of the dollar. prices are starting to rise. which of the following would most likely occur to stabilize the economy in this scenario?
congress would pass a tax increase on major corporations to cut investments.
congress would pass a measure decreasing taxes on small businesses to curb inflation.
the fed would lower the cash rates to slow the growth and prevent inflation.
the fed would raise the cash rates to increase market growth and prevent a recession.