Solved

How Can Fighting Inflation Cause a Recession

Question 55

Multiple Choice

How can fighting inflation cause a recession?


A) The Federal Reserve raises interest rates to intentionally slow down the economy.
B) Businesses lay off workers as a way to keep prices from rising too fast.
C) The federal government orders businesses to reduce prices, which raises interest rates.
D) Households stop buying goods and services in response to higher prices.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents