In a Period of Deflation,when There Is a Declining Price

question 78

Multiple Choice

In a period of deflation,when there is a declining price level,low nominal interest rates do not necessarily indicate that the cost of borrowing is ________ or that monetary policy is ________.

• A)low; tight
• B)low; easy
• C)high; tight
• D)high; easy

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Definitions:

Cognitive Abilities

The mental skills that involve the ability to learn, remember, solve problems, and pay attention.

Innate

Referring to qualities, abilities, or knowledge that are present from birth, not acquired through experience.

Human Traits

Characteristics, attributes, or behaviors that are inherent or acquired by humans, which can be physical, psychological, or behavioral.

Gene

A unit of heredity that is transferred from a parent to offspring and is held to determine some characteristic of the offspring.