An Interesting Aspect of the Recession of 1990/91 Was That

question 13

Multiple Choice

An interesting aspect of the recession of 1990/91 was that

• A)because of rising oil prices, the inflation rate did not fall
• B)unemployment and inflation both increased sharply all through 1991
• C)fiscal policy was highly restrictive and the Fed was very inactive
• D)fiscal policy was immobilized due to a large budget deficit, while monetary policy did not work well due to credit rationing by banks
• E)while the war against Iraq stimulated the economy, the Fed restricted money supply

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Definitions:

Consumer

An individual or group that purchases goods and services for personal use, driving demand in the economy.

Third-Party Payments

Transactions in which the person making a payment is not directly receiving the good or service, often seen in healthcare and insurance.

Healthcare Prices

The cost associated with medical services and products, which can vary widely depending on a variety of factors.

Economize

The act of using resources efficiently, especially to reduce costs.