In 2011, the Federal Reserve Was Facing

Multiple Choice

In 2011, the Federal Reserve was facing:

A) hyperinflation, which can be reversed only with disinflationary policies.
B) stagflation, a combination of high inflation and high unemployment, which cannot be reversed easily.
C) the deepest recession since the Great Depression combined with rapidly falling prices.
D) a very severe deflation, rare in history, which was experienced only by Japan.