This Question: 4 pts 10110 (o complete) This Quiz: 40 pts possible When will U.S

Question

This Question: 4 pts 10110 (o complete) This Quiz: 40 pts possible When will U.S. interest rates rise? The Federal Reserve Chairman Ben Bernanke said Thursday that while interest rates will stay low for some time, interest rates will rise as the recovery picks up, in order to fight off the threat of inflation. Source: CNNMoney, October 9, 2009 Explain why, when the economy starts to recover from recession and interest rates are low, there is a "threat of inflation. When the economy starts to recover from recession and interest rates are low, there is a "threat of inflation because the CA, demand for money decreases O B. demand for money increases O C. demand for money and the supply of money increase in a recovery. D. supply of money decreases The Fed must continuallythe As a result, the inflation rate O A. increase; falls OB. increase, rises O C. decrease; rises OD, decrease falls O E. keep constant; rises the quantity of money to keep the nominal interest rate low in the long run Click to select your answer

Explanation / Answer

1.there is threat of inflation because demand for money and supply of money increases

2 b is answer--increase, rises

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.