Imagine the following: New sources of energy have become marketable and the industries involved have hired thousands to operate the emergence of new businesses. Construction companies cannot build homes fast enough for workers in the energy industry. Due to increasing salaries in several other industries that partner with energy companies, the demand for everything from food to entertainment to travel has increased. High demand has brought about shortages in some product categories. To help manage the situation in the short term, ___________.
a) the Fed will likely decrease interest rates
b) the Fed will likely increase interest rates
c) Congress will likely decrease taxes
d) Congress will likely enact monetary policy
Answer: b