Suppose the federal reserve wants to stop inflation from growing. in three to four sentences, explain how its actions slow economic growth.

Is this an essay? If inflation is running high, the Fed will raise interest rates, sell bonds on the open market, and raise the reserve ratio (if it comes to that. It rarely ever does). Raising interest rates makes money "rare." Selling bonds decrease the reserves of banks, which decreases their lending capabilities (again, making money rarer). The reserve ration is the "nuclear option" of monetary policy. It specifically changes how much money banks have to keep on hand. If it changes, the money multiplier changes. In other words, the Fed would raise the reserve ratio in order to fight inflation.

Ibelieve the answer is (a) true.