When the Rate of In?ation in an Economy Is Low

question 19

Multiple Choice

When the rate of in?ation in an economy is low, _____ in order to avoid de?ation.

• A) the government has to reduce spending
• B) the central bank has to raise interest rates
• C) the central bank has to cut interest rates
• D) the government has to increase taxes

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Definitions:

Weight Loss

The reduction of total body mass due to a loss of fluid, body fat, or lean mass, often pursued for health, fitness, or aesthetic reasons.

Common Cold

A viral infectious disease of the upper respiratory tract that primarily affects the nose, throat, sinuses, and larynx.

Influenza

A highly contagious viral infection of the respiratory passages causing fever, severe aching, and often leading to serious complications.

Allergy

A condition in which the immune system reacts abnormally to a foreign substance, causing adverse effects.