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.

---

Definitions:

Encoding

The process of converting information into a particular form for efficient communication or storage.

Technical Report

A document that describes the process, progress, or results of technical or scientific research, or the state of a technical or scientific research problem.

Psychological Safety

A shared belief that it is safe to take social risks.

Cross-cultural Communication

The process of recognizing and understanding the differences and similarities in communication across various cultures.