In 2011, the Federal Reserve Was Facing

question 87

Multiple Choice

In 2011, the Federal Reserve was facing:

• A) hyperinflation, which can be reversed only with disinflationary policies.
• B) stagflation, a combination of high inflation and high unemployment, which cannot be reversed easily.
• C) the deepest recession since the Great Depression combined with rapidly falling prices.
• D) a very severe deflation, rare in history, which was experienced only by Japan.

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