The Problem Faced by the Fed Stems from Two of the Ten

question 322

Multiple Choice

The problem faced by the Fed stems from two of the Ten Principles of Economics.Those principles are as follows:

• A) (1)Governments can usually improve market outcomes,and (2)society faces a short-run trade-off between inflation and unemployment.
• B) (1)Governments can sometimes improve market outcomes,and (2)interest rates fall when the government prints too much money.
• C) (1)Society faces a short-run trade-off between inflation and unemployment,and (2)prices rise when the government prints too much money.
• D) (1)Society faces a long-run trade-off between inflation and unemployment,and (2)prices rise when the government prints too much money.

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