Answer:
This is called deflation.
Explanation:
Deflation refers to the situation when there is a decline in the general price level, it causes the economy to slow down. It generally happens because of a reduction in the money supply.
The nominal costs of goods and services, labor, capital, etc. decline. But the relative prices, generally remain the same. '
The decline in price is not good for everyone and adversely affects producers. It is also harmful to borrowers. The decline in the price level increases the purchasing power of money.
The right answer for the question that is being asked and shown above is that: "Increase reserve requirement." The <span>action that would the Federal Reserve most likely take to rein in spiraling inflation is that of </span><span>Increase reserve requirement.
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The right answer for the question that is being asked and shown above is that: "<span>Increase reserve requirement." </span>
Public Sector: the part of an economy that is controlled by the government.
( The government controls the income, and everything part of a business)
Private Sector: the part of the national economy that is not under direct government control.
( Sometimes referred to as " a citizen run business" in which a citizen makes all the choices and decisions for what is best for their business)
Answer:
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Explanation:
