During a period of high inflation, what government actions can preserve the value of money? Select two options. forcing producers to sell at a certain price selling gold for use as an alternate currency restricting the money supply by adjusting interest rates providing increased benefits to people harmed by inflation decreasing the demand for money by lowering the price of real estate

restricting the money supply by adjusting interest rates

Explanation:

As you may already know, inflation occurs when within a country there is an exaggerated and continuous increase in the price of all products and services.

When this occurs, the quickest solution that the government can choose is to restrict the money supply by adjusting interest rates. This occurs when banks raise the basic interest rate in the economy. Thus, obtaining credit is more expensive, reducing the supply of money and making the consumer buy less, since there is less money available.

As a result, the demand for the products is lower than the supply, forcing producers to lower the prices of the products, so that the consumer can buy again.

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