Inflation inertia is the tendency for inflation to:
A. increase when the Fed decreases interest rates.
B. decrease when the Fed increases interest rates.
C. change relatively slowly from year to year.
D. equal zero.
Answer: C
Economics
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A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
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The above figure illustrates Mary's production possibilities frontier. If Mary wants to move from point d to point c, she must
A) improve technology. B) increase her accumulation of capital. C) give up some of good X in order to obtain more of good Y. D) give up some of good Y in order to obtain more of good X.
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