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Business, 03.12.2019 03:00 charizma

Suppose? that, in the united? states, the inflation rate is at 3.2 percent? (the target inflation rate is 2? percent). rapidly rising prices and low interest rates have spurred business to hire more workers and invest in new facilities.

which of the following is likely to be true of the u. s. economy if there is a rapid rise in prices and low interest? rates?

a. there could be an appreciation of the u. s.? dollar, resulting in a lower output gap in the u. s. economy.
b. the u. s. economy could experience an increase in gross domestic? product, eventually resulting in an economic boom.
c. the u. s. economy could experience unsustainable? expansion, resulting in a sharp economic downturn.

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