In Which of the Following Situations Is a Program to Reduce

question 50

Multiple Choice

In which of the following situations is a program to reduce inflation likely to have the lowest costs?

• A)if the sacrifice ratio is high and the reduction is unexpected
• B)if the sacrifice ratio is high and the reduction is expected
• C)if the sacrifice ratio is low and the reduction is unexpected
• D)if the sacrifice ratio is low and the reduction is expected

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Definitions:

Traveler's Checks

Preprinted, fixed-amount checks designed to allow the person signing them to make an unconditional payment to someone else as a result of having paid the issuer for that privilege.

Debit Card

A payment card that deducts money directly from a consumer's checking account to pay for a purchase.

Credit Card

A payment card issued to users as a method of payment allowing the cardholder to borrow funds with which to pay for goods and services with the promise to pay back the lender.

Interest Rates

The proportion of a total amount of money that is charged for borrowing it, usually represented as a yearly rate.