Which of the Following Could the Government Do to Decrease

question 12

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)All of the above are correct.

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Definitions:

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing and manipulation.

Explicit Memory

Retention of facts and experiences that we can consciously know and “declare.” (Also called declarative memory.)

Conscious Memory

memory that involves the awareness of remembering and which can typically be verbalized.

First President

Refers to George Washington, the inaugural President of the United States, serving from 1789 to 1797.