How Can Fighting Inflation Cause a Recession

question 56

Multiple Choice

How can fighting inflation cause a recession?

• A) The Federal Reserve raises interest rates to intentionally slow down the economy.
• B) Businesses lay off workers as a way to keep prices from rising too fast.
• C) The federal government orders businesses to reduce prices, which raises interest rates.
• D) Households stop buying goods and services in response to higher prices.

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Definitions:

Spanish

A Romance language originating in the Iberian Peninsula and now spoken in many countries around the world.

TIMSS

An international assessment of mathematics and science knowledge of fourth and eighth graders around the world, known as the Trends in International Mathematics and Science Study.

International Test

Assessments intended to evaluate competencies, knowledge, or skills across different countries or cultures, often used for benchmarking educational outcomes.

Science And Math

Academic disciplines focused on the systematic study of the natural world through observation, experimentation, and mathematical calculation.