41. Which of the following is an example of an inflation-indexed security?
a) Treasury bill
b) Corporate bond
c) Stock
d) Treasury Inflation-Protected Securities (TIPS)
42. Which of the following is an example of an automatic stabilizer that can mitigate the impact of inflation?
a) Unemployment benefits
b) Tax cuts
c) Government subsidies
d) Infrastructure spending
43. The term “demand-pull inflation” implies that inflation is caused by:
a) An increase in the supply of money
b) A decrease in aggregate demand
c) An increase in aggregate demand
d) A decrease in the supply of money
44. The term “core inflation” excludes which of the following?
a) Food and energy prices
b) Housing prices
c) Medical costs
d) Education expenses
45. Which of the following is a measure taken to control inflation?
a) Decreasing taxes
b) Increasing government spending
c) Decreasing interest rates
d) Increasing money supply
