In order to reduce inflation, the federal reserve enacted policy that Allowed interest rates to rise.
How did the Fed try to reduce inflation?
In order to combat inflation, the Fed enacted policies which aimed to increase the interest rate.
The effect of this would be that companies and people would borrow less money which means that less money would be spent. If there is less money being spent, inflation should fall.
In conclusion, option B is correct.
Find out more on the effects of a fall in interest rates at https://brainly.com/question/1152309.
