Monetary Policy That Attempts to Increase the Rate of Inflation

question 158

Multiple Choice

Monetary policy that attempts to increase the rate of inflation is called a

• A)reinflation.
• B)supply shock.
• C)recession.
• D)temporary growth slowdown.
• E)disinflation.

---

Definitions:

Predetermined

Established in advance or determined beforehand.

Lump-Sum Amounts

Single payments made for a group of items or services rather than individual transactions.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.

Variable Costs

Expenses that fluctuate directly with changes in production or service levels.