When an Anti-Inflation Policy Is Credible

question 2

Multiple Choice

When an anti-inflation policy is credible,

• A)a new long-run equilibrium at a lower inflation rate is reached much faster
• B)the sacrifice ratio is zero
• C)the Fed can cheat a little by letting money supply grow to avoid a recession
• D)real wages immediately adjust and thus no increase in the rate of unemployment is needed to reduce inflation
• E)there is no need for workers to adjust their wage demands, so the economy will adjust more easily to a new long-run equilibrium

Understanding the cash flow impacts of buying and selling assets, including the disposal of plant, property, and equipment.

Distinction between cash inflows and outflows in financing activities, and the understanding of their impact on cash flow.

Evaluating cash flow effects of transactions and events, including loss from disposal of assets or changes in account balances.

Ability to discern between operating, investing, and financing activities within various scenarios.

---

Definitions:

Ethane

a colorless, odorless hydrocarbon gas that is a constituent of natural gas and used as a petrochemical feedstock.

Propane

A flammable hydrocarbon gas of the alkane series, used as fuel in heating appliances, cooking equipment, and vehicles.

Liquefied Petroleum Gases

Flammable hydrocarbon gases including propane, butane, and mixtures of these gases, which are used as fuel in heating appliances, cooking equipment, and vehicles.

Breeder Reactor

A nuclear reactor designed to produce more fissile material than it consumes, typically using uranium-238 or thorium-232.