Deck 30: 3: Sec 303 Mc Conclusion

Question 1

Inflation costs are minimized during periods of

A)​hyperinflation.
B)​large,unexpected deflation.
C)​moderate inflation.
D)rapid money growth.

Answer 1

B

Question 2

In order to maintain stable prices,a central bank must

A)maintain low interest rates.
B)keep unemployment low.
C)tightly control the money supply.
D)sell indexed bonds.

Answer 2

B

Question 3

Inflation costs are minimized under which inflation rate?

A)​-20 percent
B)5 percent
C)​15 percent
D)575 percent

Answer 3

C