A Policymaker Wants to Reduce Inflation

question 90

Multiple Choice

A policymaker wants to reduce inflation. In order to make an intelligent decision about how to do so, the policymaker:

• A) should use a simple rule: once inflation is gone, it will always be gone.
• B) needs to know the causes of inflation, such as the government's printing too much money.
• C) should find out if people are really better off as a result of the inflation.
• D) should realize that inflation can be reduced without any costs.

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Definitions:

Immobilization

The act of rendering a part of the body motionless, often through the use of casts or splints, to allow for healing or prevention of further injury.

Hypoglycemia

A condition characterized by an abnormally low level of glucose in the blood.

Dizziness

A sensation of light-headedness, unsteadiness, or the feeling of movement (spinning or floating) when one is stationary, often related to problems of the inner ear or brain.

Pallor

An unhealthy pale appearance, often indicative of illness or distress.