Directions: Choose the Best Answer Based on the Information You

question 3

Multiple Choice

Directions: Choose the best answer based on the information you read in Chapter 5. ​ When you question whether the evidence in a text is convincing, you are using

• A)clarifying questions.
• B)reasoning questions.
• C)consequence questions.
• D)recursive questions.

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Definitions:

Extraordinarily High Inflation

A situation where the rate of inflation becomes extremely high and uncontrollable, eroding purchasing power and destabilizing the economy.

Budget Deficit

The financial situation where government’s expenditures exceed its revenues within a specific time period, leading to borrowing or debt accumulation.

Central Bank

An institution that manages a country's currency, money supply, and interest rates, and oversees the commercial banking system.

Open Market Purchases

Transactions by a central bank in which it buys securities from the market to increase the money supply and encourage economic activity.