Which of the Following Could the Government Do to Decrease

question 48

Multiple Choice

Which of the following 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:

Free Blacks

African Americans who were not enslaved, enjoyed certain degrees of freedom, and sometimes owned property, particularly before the Civil War in the United States.

Laws

Rules and regulations that are established and enforced by a governing authority to maintain order and protect people's rights.

Franchise

The right to vote in public, political elections; often discussed in the context of extending this right to different groups historically excluded.

Black Sailmaker

Refers to a historically significant African-American individual or individuals engaged in the craft of making sails, a profession that would have held import both economically and in terms of mobility.