One Problem for Economic Stability Is That in a Period

question 183

Multiple Choice

One problem for economic stability is that in a period of inflation,

• A)banks will be tempted to increase lending in order to increase profits.
• B)banks will be tempted to decrease lending in order to increase profits.
• C)profit-oriented banks will tend to hold excess reserves and decrease the money supply.
• D)deposits will decrease and banks will have to reduce lending.

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Definitions:

Gross Motor

Skills that involve the large muscles of the body, such as those used for walking, running, lifting, and other major physical activities.

Symbolic Thinking

The ability to use symbols, signs, or objects to represent something else, a critical aspect of language development and abstract thought.

Preoperational Stage

A development stage in early childhood according to Piaget, characterized by symbolic thinking and difficulty understanding other perspectives.

Average North American

could refer to statistical norms or characteristics typically observed among the population of North America, such as average income, education level, or lifestyle.