To Reduce the Demand for Goods and Services, the Central

question 6

Multiple Choice

To reduce the demand for goods and services, the central bank will ___ its target inflation rate and _____ nominal and real interest rates.

• A) reduce; decrease
• B) reduce; increase
• C) raise; decrease
• D) raise; increase

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Definitions:

Social Scripts

Predefined, stereotyped sequences of actions or behaviors that individuals follow in specific social contexts.

Environment

The environment or the conditions under which a person, animal, or plant exists or functions.

Culture

The social behavior, norms, knowledge, beliefs, arts, laws, customs, capabilities, and habits of the individuals in these groups.

Genes

Units of heredity made up of DNA, responsible for governing characteristics and traits passed from parents to offspring.