Which of the Following Could the Government Do to Decrease

question 12

Multiple Choice

Which of the following could the government do to decrease the costs of inflation without lowering the inflation rate?

• A)Avoid unexpected changes in the inflation rate.
• B)Rewrite the tax laws so that nominal gains were taxed instead of real gains.
• C)Make policy that would discourage firms from issuing indexed bonds.
• D)All of the above are correct.

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Definitions:

Milkshake Mixer

A kitchen appliance designed specifically for blending and mixing milkshake ingredients to create a smooth, evenly mixed beverage.

Enforceable

Capable of being imposed or compelled by legal means or authority.

Oral Contract

An agreement between parties spoken out loud and not written down, yet it is legally binding.

Written Contract

A legally binding agreement between parties that is set down in writing and signed by the parties involved.