If Citizens Vote on the Basis of Both Low Inflation

question 41

Multiple Choice

If citizens vote on the basis of both low inflation and low unemployment at the time of the election, then presidents might, in order to ensure their reelection:

• A) spur inflation soon after their elections, and then cause a recession.
• B) stimulate the economy throughout their terms.
• C) cause a recession soon after their election, and then stimulate the economy.
• D) run a tight monetary and fiscal policy throughout their terms.

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