What Could the Government Do to Decrease the Costs of Inflation

question 115

Multiple Choice

What could the government do to decrease the costs of inflation without lowering the inflation rate?

• A) avoid unexpected changes in the inflation rate
• B) rewrite the tax laws so that nominal gains were taxed instead of real gains
• C) make policy that would discourage firms from issuing indexed bonds
• D) pass legislation to discourage inflation-adjusted work contracts

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Definitions:

Fertility

The natural capability to produce offspring.

Twin-study Method

A research design used to estimate the genetic and environmental influences on phenotypes by comparing the resemblance between monozygotic and dizygotic twins.

Adoption Studies

Research methods used in behavioral genetics, comparing similarities between adopted children and their adoptive and biological parents to understand the influence of genetics versus environment.

Genetic Influence

The impact that genes inherited from parents have on traits, behaviors, and the likelihood of developing certain conditions or diseases.