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
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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
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.
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
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.