Inflation costs are minimized during periods of
a. hyperinflation
b. large, unexpected deflation.
c. moderate inflation.
d. rapid money growth.
c
You might also like to view...
Suppose the economy is initially in long-run and short-run equilibrium. If the Fed decides to pursue a contractionary monetary policy, we will see
A. bond prices fall, interest rates rise, aggregate demand falls as investment spending decreases and consumption spending remains unchanged, and real GDP and the price level decrease in the short run, but only the price level falls in the short run. B. bond prices fall, interest rates fall, aggregate demand remains unchanged as consumption spending decreases, but investment spending increases. GDP remains constant in both the short run and the long run, but the price level falls in both. C. bond prices fall, interest rates rise, aggregate demand falls as investment and consumption spending decrease, and real GDP and the price level decreasing in the short-run, but only the price level decreasing in the long run. D. interest rates rise but no change in bond prices. Aggregate demand falls as consumption spending and investment spending decrease, and the price level and real GDP fall in both the short run and the long run.
Why does it usually not make sense to reduce pollution to zero?
What will be an ideal response?
The CAMELS ratings are:
A. published once a quarter in banking journals issued by the Federal Reserve. B. not made public. C. made public monthly to the financial markets so people can judge the relative quality of banks. D. included in the annual report of publicly owned banks.
How does increased household borrowing affect present and future consumption?
What will be an ideal response?