Question
Which one of the following is the act of stimulating the economy by increasing the money supply or by reducing taxes ?
Answer: Option C
Answer: (c)
Reflation is the act of stimulating the economy by increasing the money supply or by reducing taxes, seeking to bring the economy (specifically price level) back up to the long-term trend, following a dip in the business cycle.
Disinflation: Reduction in the rate of inflation.
Inflation Hedge: It is an investment with intrinsic value such as Oil, Natural Gas, Gold, farmland and to a lesser degree commercial real state.
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Answer: (c)
Reflation is the act of stimulating the economy by increasing the money supply or by reducing taxes, seeking to bring the economy (specifically price level) back up to the long-term trend, following a dip in the business cycle.
Disinflation: Reduction in the rate of inflation.
Inflation Hedge: It is an investment with intrinsic value such as Oil, Natural Gas, Gold, farmland and to a lesser degree commercial real state.
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