Suppose that after five solid years of economic growth, Eurekaland begins to experience inflationary pressures due to strong consumer and investor confidence. If Eurekaland’s central bank wants to prevent inflation from becoming a major problem, which of the following actions should it take?a) It would reduce the money supply to push interest rates higher.
b) It would increase the money supply to push interest rates higher.
c) It would reduce the money supply to push interest rates lower.
d) It would increase the money supply to push interest rates lower.