Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation.
B. low economic growth and high inflation.
C. high economic growth and low inflation.
D. low economic growth and low inflation.
Answer: B
You might also like to view...
Researchers have found that countries that were settled by Europeans who planned on staying permanently were
a. more likely to protect private ownership rights and limit the power of the government. b. less likely to protect private ownership rights and limit the power of the government. c. more likely to protect private ownership, but less likely to limit the power of the government. d. less likely to protect private ownership, but more likely to limit the power of the government.
A reduction in the discount rate
A. Increases the cost of borrowing reserves from the Federal Reserve. B. Discourages banks from borrowing reserves from the Fed. C. Is consistent with a tight monetary policy. D. Signals the Federal Reserve's desire for additional credit expansion.