If inflation is anticipated, some effects of inflation on the redistribution of income can be avoided.
Indicate whether the statement is true or false
Question 2
Refer to Figure 27-2. In the graph above, if the economy is at point A, an appropriate fiscal policy by Congress and the president would be to
A) execute an open market sale of government securities.
B) increase marginal income tax rates.
C) lower the discount rate of interest.
D) increase government transfer payments.