A policy maker who is concerned with the rate of inflation may not choose to reduce it because ________.
A. the government can only affect unemployment, not the rate of inflation
B. reducing the rate of inflation means that the unemployment rate will increase
C. reducing the rate of inflation means reducing taxes
D. reducing the rate of inflation requires an increase in government spending
Answer: B
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If x increases whenever y decreases, then x and y are
A) not related. B) positively related. C) directly related. D) negatively related. E) related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis.
The De Beers Company blocked competition
A) by controlling the supply of most of the world's high-quality bauxite, the mineral used to produce aluminum. B) in the diamond market by controlling the output of most of the world's diamond mines. C) in the market for fresh and frozen cranberries because it controls about 80 percent of the cranberry crop. D) because it has lower production costs than other department stores due to economies of scale.