Reference no: EM131163829
1. Which one of the following is a disruptive effect of high inflation on the economy?
A) It can wipe out the value of people’s savings
B) It hurts people who are living on fixed incomes
C) It redistributes wealth from creditors to debtors.
D) All of the above
2. Fiscal policy refers to
A) labor market regulation.
B) financial market regulation.
C) government spending and tax policy.
D) the Federal Reserve’s policy
3. The most likely economic situation in which a government would implement contractionary fiscal policy is ...
A) government budget surpluses.
B) government budget deficits.
C) high unemployment.
D) high inflation
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Disruptive effect of high inflation on the economy
: The most likely economic situation in which a government would implement contractionary fiscal policy is ... Which one of the following is a disruptive effect of high inflation on the economy? Fiscal policy refers to.
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