Price Controls Tend to Be Ineffective in Controlling Inflation Because

question 26

Multiple Choice

Price controls tend to be ineffective in controlling inflation because they

• A)fail to shift the SRAS curve sufficiently far to the right.
• B)suppress inflation rather than eliminate it.
• C)widen the government's budget deficit.
• D)reduce the rate of growth of the money supply.

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Definitions:

Investment Dealer

A business entity or individual that engages in the buying and selling of securities for its clients or its own account.

Securities Commission

A regulatory body charged with overseeing the securities markets to protect investors and maintain fair, efficient, and transparent systems.

Insider Trading

The illegal practice of trading a public company's stock or other securities based on material, non-public information about the company.

Prospects

Potential customers or clients, or the likelihood of future success in a particular area.