Unit 2 Economics - Day 4 - Inflation Question Preview (ID: 63468)
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What can mitigate inflation?
a) high interest rates
b) low interest rates
c) high demand
d) low supply
What can cause inflation?
a) high interest rates
b) low interest rates
c) high taxes
d) regulation
A rise in prices as a result of an increase in demand without an increase in supply.
a) taxes
b) subsidies
c) inflation
d) regulation
Low interest rates do not cause inflation increase if _____
a) supply increases
b) supply decreases
c) demand decreases
d) demand increases
How could college become more affordable?
a) Cancel financial aid (FAFSA)
b) increase financial aid (FAFSA)
c) The Fed lowers interest rates
d) create fewer colleges
Who is affected by inflation?
a) Firms
b) Households
c) All of the above
d) Government
Who initiates inflation?
a) Firms
b) The Federal Reserve
c) Households
d) The President
Which is NOT a factor in causing inflation?
a) High supply
b) More spending
c) Increased demand
d) Low interest rates
Which of the following does NOT increase price?
a) Low supply
b) High demand
c) None of the above
d) Low demand
How can The Federal Reserve lower demand?
a) Lower interest rates
b) Print more money
c) Raise interest rates
d) Lower taxes
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