MLIV Pulse: Is Recession Necessary To Rein Inflation?

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Business
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University
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Hard
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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is suggested as a more appropriate solution for supply-side problems?
Increasing taxes
Reducing government spending
Supply-side solutions
Monetary policy adjustments
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why is it considered suboptimal for central banks to induce a recession?
Because it increases government debt
Because economies may not need higher interest rates
Because it can lead to higher inflation
Because it reduces consumer confidence
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the suggested approach instead of forcing a recession?
Allowing time for mechanisms to work through
Implementing strict monetary policies
Immediate reduction of interest rates
Increasing government spending
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the main argument against central banks raising interest rates?
It will increase the supply of goods
It will lead to a decrease in inflation
It is unnecessary for economies that do not need it
It will boost economic growth
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the perception of the US economy's ability to handle interest rates?
It is already at its limit with current interest rates
It can handle much higher interest rates than expected
It cannot handle any increase in interest rates
It can only handle a slight increase in interest rates
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