Suppose the annual inflation rate in an economy increases from 4 percent to 10 percent. Which of the following will be an appropriate policy measure in this situation?

a. A decrease in the tax rate
b. An increase in government purchases
c. An open market purchase of government bonds
d. An increase in the reserve requirement

d

Economics

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A buyer's response to a change in income is an example of a "change in demand."

a. True b. False Indicate whether the statement is true or false

Economics

A constant-cost industry is one in which:

A. a higher price per unit will not result in an increased output. B. if 100 units can be produced for $100, then 150 can be produced for $150, 200 for $200, and so forth. C. the demand curve and therefore the unit price and quantity sold seldom change. D. the total cost of producing 200 or 300 units is no greater than the cost of producing 100 units.

Economics