In Which Situation Is a Program to Reduce Inflation Likely

question 39

Multiple Choice

In which situation is a program to reduce inflation likely to have the lowest costs?

• A) if the sacrifice ratio is high and the reduction is unexpected
• B) if the sacrifice ratio is high and the reduction is expected
• C) if the sacrifice ratio is low and the reduction is unexpected
• D) if the sacrifice ratio is low and the reduction is expected

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Definitions:

Ritz-Carlton

A luxury hotel brand known for its high level of service quality and customer care, operating globally under the Marriott International portfolio.

Disposable Income

The financial resources that remain for saving and spending in households, following the deduction of income taxes.

State and Federal Income Taxes

Taxes imposed on individuals and businesses by state and the federal government based on the income earned within the tax year.

Necessities

Essential goods or services required for basic living and sustaining human life, often including food, water, shelter, and clothing.