The presence of wage and price controls in the United States during WWII:
A. helped to reduce the inflationary pressures created by contractionary fiscal policy.
B. had little impact on inflation because of the Depression.
C. helped to reduce the inflationary pressures created by expansionary fiscal policy.
D. was not successful in reducing inflation during this period.
Answer: C
You might also like to view...
In which of the following sets of circumstances can we confidently expect inflation?
A. Aggregate supply decreases and aggregate demand increases. B. Aggregate supply increases and aggregate demand decreases. C. Aggregate supply and aggregate demand both increase. D. Aggregate supply and aggregate demand both decrease.
The administrators of welfare programs have strong incentives to eliminate poverty
a. True b. False
Which of the following is a definition of the real interest rate in a world with a positive inflation rate?
a. The percentage increase in the borrower's purchasing power from taking a loan b. The percentage decrease in the borrower's dollars from taking a loan c. The percentage increase in the lender's purchasing power from making a loan d. The percentage increase in the lender's dollars from making a loan e. The percentage decrease in the lender's dollars from making a loan
When the government goes from running a balanced budget to running a budget surplus,
a. national saving decreases, the interest rate rises, and the economy's long-run growth rate is likely to decrease. b. national saving increases, the interest rate falls, and the economy's long-run growth rate is likely to decrease. c. national saving decreases, the interest rate rises, and the economy's long-run growth rate is likely to increase. d. national saving increases, the interest rate falls, and the economy's long-run growth rate is likely to increase.