The correct answer is B.
If aiming to reduce inflation, the Federal reserve needs to decrease the money supply, which means reducing the amount of money in circulation in the economy. This is denominated a contractionary monetary policy.
If the money supplied decreases, the cost of borrowing (the cost of money) increases due to its increased relative scarcity. This, in turn, discourages borrowing, and produces a lower income, and a drop in demand, production, and employment. Therefore, it causes the economy to shrink as mentioned in the question.
<u>As spending drops, so do prices and therefore inflation. </u>
Such a strategy is only implemented when there are inflationary preassures, as it also brings important side effects in terms of output.
Answer:
illustrates how practices that may seem natural may differ greatly across cultures.
Explanation:
Rosa is a new mother who lives in Guatemala. Like many women in her culture, she sleeps with her infant. When she learns that this is not common practice in the United States, she is shocked and feels sadness for the babies who do not get to sleep with their parents. Rosa's reaction to this cultural difference illustrates how practices that may seem natural may differ greatly across cultures.
Another example is the Scottish man dressed in his kilt, this will seem outrageous in some part of the world.
Answer and Explanation:
Although Nepal's economy is mainly focused on agriculture, it faces many problems and obstacles to modernizing agriculture. The first obstacle is that the country has a low investment in technology, which prevents farmers from having access to new resources aimed at agriculture, causing them to be stuck with traditional agricultural systems and elements.
These traditional agricultural systems do not allow high productivity of crops, causing crops to be low, sales to be low and economic gain to be weak, preventing farmers from investing in better production methods.
Other challenges to this modernization are the lack of investment in research, the lack of efficient transport, the lack of a good irrigation system and a limited market.
The most significant immediate impact of the Columbian exchange was the cultural exchanges and the transfer of people (both free and enslaved) between continents.
