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.

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Definitions:

Inborn Traits

Characteristics, physical or behavioral, that are present from birth, often influenced by genetic and prenatal factors.

Hormonal Development

The process by which hormones bring about physical and sexual maturity during puberty and throughout life.

Coined

Coined refers to the creation of a new word or phrase that captures a concept or defines an idea or object not previously encapsulated in the language.

Homosexuality

A romantic or sexual attraction or behavior between members of the same sex or gender.