Refer to the Following Figure When Answering the Following Questions

question 21

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 12.9: Change in Inflation by Quarter
-Consider Figure 12.9. You are Federal Reserve chairman Greenspan and today's date is the second quarter of 1997 (1997.2) . Given the information you have, using the Phillips curve, to stabilize the economy you would ________ interest rates, risking ________.

• A) raise; recession
• B) raise; inflation
• C) lower; inflation
• D) lower; higher unemployment
• E) Not enough information is given.

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Definitions:

Residential Fresh Water

Refers to the supply of fresh water used in households for purposes such as drinking, cooking, cleaning, and gardening.

Water For Irrigation

Water specifically used for the purpose of watering crops in agriculture to assist in growth, supplementing the water these crops receive from natural rainfall.

Surface Runoff

Water flow on the surface of the ground, resulting from rain, snowmelt, or irrigation, which can carry pollutants into water bodies.

Groundwater

Water that collects or flows beneath the Earth's surface, filling the porous spaces in soil, sediment, and rocks.