"How Do We Prevent the Inflationary Fire from Igniting Again

question 81

Multiple Choice

"How do we prevent the inflationary fire from igniting again and stop the roller coaster ride in the inflation rate of the last 40 years?" Milton Friedman's famous proposition suggests the simple solution:

• A)reduce the number of terms that politicians are allowed to serve.
• B)reduce the growth rate of the money supply.
• C)reduce the marginal tax rate on low-income wage earners.
• D)increase the marginal tax rates on businesses that hike prices in excess of 5 percent per year.

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Definitions:

Ego

In psychoanalytic theory, the part of the mind that mediates between the conscious and unconscious and is responsible for reality testing and a sense of personal identity.

Superego

The component of the human psyche in Freudian psychoanalytic theory that holds internalized moral standards and ideals acquired from parents and society, governing over the ego.

Unconscious

The part of the mind that is inaccessible to the conscious mind but that affects behaviors and emotions.

Psychosexual Development

Freud's theory describing how personality develops during childhood through a series of stages centered on erogenous zones.