To Prevent Cost-Push Inflation

question 130

Multiple Choice

To prevent cost-push inflation

• A) there must not be an excess demand for money.
• B) interest rates must not rise.
• C) there must not be an increase in government purchases.
• D) the Fed must not let the quantity of money rise persistently.

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Definitions:

Self-Serving Bias

The common human tendency to attribute positive events to one's own character but attribute negative events to external factors.

Ethnic Group

A community or population made up of people who share a common cultural background, ancestry, or social experience.

Superior

Often used to describe something that is above average in quality or performance, or higher in position or rank.

Deindividuation

A psychological state characterized by reduced self-awareness and decreased personal responsibility in group settings.