Question

According to this chart, what is one result of the federal reserve sharply decreasing the discount rate?

A. Deflation occurs as the economy expands.
B. Deflation occurs as the economy contracts.
C. Inflation occurs as the economy expands.
D. Inflation occurs as the economy contracts.

I really would like some help with this. I'm leaning towards it being B, but I am not sure. If someone could explain to me what they think is the right answer and why, I would be appreciative. I know deflation is when something goes down and inflation is when something goes up. How does the discount rate directly related to deflation and inflation???

Answer 1

Socialism and Communism Quiz

1. How did the federal government respond to this concern during the late 1800s and early 1900s?

Correct answer (1 pt) The federal government passed laws banning monopolies and trusts to prevent the restraint of competition.

2. Whom does this excerpt describe?

Correct answer (1 pt) Karl Marx

3. According to this chart, what is one result of the Federal Reserve sharply decreasing the discount rate?

Correct answer (1 pt) Inflation occurs as the economy expands.

4. An increasing Department of Defense budget is an example of what kind of spending?

Correct answer (1 pt) discretionary

5. This photograph shows a worker’s pay stub. What does this image suggest about federal taxes today?

Correct answer (1 pt) About a third of the taxes withheld are for Social Security.

6. Under which of the following circumstances might the United States decide to eliminate tariffs on a particular import from another country?

Correct answer (1 pt) if the item cannot be produced in the United States

7. What is the role of the Securities and Exchange Commission (SEC)? How does it influence the economy?

Essay: The role of the Securities and Exchange Commission (SEC) is to provide transparency in the financial performance of US companies. It ensures that investors can obtain accurate and consistent information on corporate profitability, which is the ability of a company to generate sufficient profits.

The benefit is the remaining income after all costs are paid.

It influences the economy by maintaining confidence in the US stock market.

8. Explain the difference between capitalism and communism. What role does the government play in each type of economic system?

Essay: capitalism is based on the principle of individual rights a free market economy an uneven distribution of wealth and very little government interference.

Communism is based on the principle of community rights, controlled economic production, an even distribution of wealth and high levels of government oversight.

Step-by-step explanation:

hope this helps you!!

Answer 2

1.B

2.A

3.C

4.C

5.A

6.A

This is what I got for my test.