Suppose the inflation rate in Zlanaga has shown an upward trend during the last five years, increasing from 5 percent to 10 percent. To combat inflation, the central bank of the country is likely to:
a. lower the discount rate

b. decrease the reserve requirements.
c. insure the deposits of customers.
d. sell government bonds.


d

Economics

You might also like to view...

Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448Over which price range is the demand unit-elastic?

A. $16-$14 B. $14-$12 C. $12-$10 D. $18-$16

Economics

During World War I (1914–18), national debt soared, leading to

(a) money creation and inflation. (b) money creation and deflation. (c) money destruction and inflation. (d) money destruction and deflation.

Economics

The Federal Reserve consists of ________ regional banks, ________ governors on the Board of Governors, and ________ voting members of the Federal Open Market Committee.

A. 14; 7; 21 B. 7; 12; 12 C. 12; 7; 12 D. 12; 7; 19

Economics

Automatic stabilizers

A. are a form of nondiscretionary fiscal policy. B. include income taxes and cash assistance to the poor. C. include in-kind assistance. D. All of the choices are true of automatic stabilizers.

Economics