Politics

Question

(03.09 MC)

Imagine the government restricts distribution and sales of gasoline during a crisis. Which of the following could be a direct

outcome of this action?

• The rate of inflation will slow down.

• The rate of inflation will speed up.

• The Fed will increase interest rates.

• The Fed will start buying more bonds.

Answer

The Fed will start buying more bonds.

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The restriction of distribution and sales of gasoline during a crisis would likely lead to the Federal Reserve (the Fed) taking action to stimulate the economy, such...