question

Which of the following is not a major component of the Federal Reserve System? a. member banks b. Federal Open Market Committee c. Securities and Exchange Commission d. Board of Governors

answer

C

question

As a result of the Financial Reform Act of 2010, the ____ was assigned the role of regulating financial products and services. a. Federal Advisory Committee b. Federal Open Market Committee c. Consumer Financial Protection Bureau d. Board of Governors

answer

C

question

Which of the following is not an activity of Fed district banks? a. clearing checks b. replacing old currency c. providing loans to depository institutions d. acting as an intermediary to match up lenders and borrowers in the stock market

answer

D

question

All ____ are required to be members of the Federal Reserve System. a. state banks b. national banks c. savings and loan associations d. finance companies e. A and B

answer

B

question

The ____ is made up of seven individual members, and each member is appointed by the president of the U.S. a. Board of Governors b. Federal Reserve district bank c. Federal Open Market Committee (FOMC) d. Securities and Exchange Commission

answer

A

question

Which of the following is currently a main role of the Federal Reserve's Board of Governors? a. regulating commercial banks b. regulating foreign trade c. controlling monetary policy d. A and C

answer

D

question

Members of the Board of Governors serve 14-year nonrenewable terms. a. True b. False

answer

T

question

With regard to monetary policy, which of the following is under direct control of the Federal Reserve's Board of Governors? a. revise reserve requirements for depository institutions b. authorize changes in the amount of borrowing by the Treasury c. monitor the stock market for insider trading d. monitor the derivatives market for illegal trading strategies

answer

A

question

The ____ rate is the interest rate charged on Fed district bank loans to depository institutions. a. federal funds b. prime c. primary credit lending d. real

answer

C

question

Which of the following is an action that the Fed uses to increase or decrease the money supply? a. buying or selling Treasury securities in the secondary market b. adjusting the tax rate imposed on income earned on Treasury securities c. adjusting the coupon rate on Treasury bonds d. selling Treasury securities in the primary market

answer

A

question

The Policy Directive is provided by Board of Governors to the FOMC. a. True b. False

answer

F

question

Total funds of commercial banks will initially ____ by the dollar amount of securities ____ by the Fed. a. increase; purchased b. increase; sold c. decrease; purchased d. A and B

answer

A

question

The purchase of government securities by someone other than the Fed results in a. an overall increase in funds among commercial banks. b. an overall decrease in funds among commercial banks. c. offsetting changes in funds at commercial banks. d. an increase in securities maintained by the Fed.

answer

C

question

As the supply of funds in the banking system ____, the federal funds rate ____. a. increases; declines b. increases; increases c. declines, declines d. none of the above

answer

A

question

Repurchase agreements are purchased by the Fed to a. temporarily decrease the aggregate level of bank funds. b. permanently increase the aggregate level of bank funds. c. permanently decrease the aggregate level of bank funds. d. temporarily increase the aggregate level of bank funds.

answer

D

question

When open market operations are used to ____ bank funds, the yield on debt instruments ____. a. reduce; decreases b. reduce; increases c. increase; increases d. none of the above

answer

B

question

____ open market operations offset the impact of other conditions that affect the level of funds. a. Active b. Passive c. Dynamic d. Defensive

answer

D

question

The main monetary policy goal of most central banks is to stabilize the value of the local currency against foreign currencies. a. True b. False

answer

F

question

The primary credit lending rate changes in accordance with changes in the federal funds rate. a. True b. False

answer

T

question

____ credit may be used for any purpose and is available only to depository institutions that meet specific requirements for financial soundness. a. Primary b. Secondary c. Tertiary d. None of the above

answer

A

question

To decrease money supply, the Fed could ____ the reserve requirement ratio. a. increase b. stabilize c. reduce d. eliminate

answer

A

question

The ____ the reserve requirement ratio, the ____ the ultimate effect of any initial increase in money supply. a. lower; less b. lower; greater c. greater; less d. B and C

answer

D

question

The ____ is directly responsible for controlling money supply growth. a. Federal Advisory Council b. FOMC c. Board of Governors d. President of the United States

answer

B

question

Assume that the reserve requirements ratio is 15%. An initial injection of $150 million could result in a maximum change in the money supply of a. $150 million. b. $1 billion. c. $1 million. d. $22.5 million.

answer

B

question

The form of money consisting of currency held by the public and checkable deposits at depository institutions is called a. M1. b. M2. c. M3. d. MMDA.

answer

A

question

The Monetary Control Act of 1980 subjected a. only member banks to the reserve requirements set by the Fed. b. only S&Ls to the reserve requirements set by the Fed. c. all depository institutions to the reserve requirements set by the Fed. d. only national banks to reserve requirements set by the Fed.

answer

C

question

The purpose of the Trading Desk of the Federal Reserve Bank of New York is to buy stocks for member commercial banks. a. True b. False

answer

F

question

The voting members of the Federal Open Market Committee consist of the Board of Governors plus the a. President of the United States. b. Presidents of the 12 Fed district banks. c. Presidents of 5 Fed district banks. d. Federal Advisory Council.

answer

C

question

The Board of Governors is composed of a. seven members appointed by the President of the United States. b. the 12 presidents of Fed district banks. c. the Federal Open Market Committee, plus the Federal Advisory Council. d. the Federal Open Market Committee, plus the President of the United States.

answer

A

question

The ____ is directly responsible for setting reserve requirements. a. Federal Advisory Council b. FOMC c. Board of Governors d. President of the United States

answer

C

question

The ____ is directly responsible for conducting monetary policy. a. Federal Advisory Council b. FOMC c. Senate d. President of the United States

answer

B

question

Based on a 2003 policy, the primary credit lending rate is set a. lower than the federal funds rate. b. lower than the prevailing Treasury bill rate. c. lower than the expected inflation rate. d. above the federal funds rate.

answer

D

question

A(n) ____ in Federal Reserve float causes a(n) ____ in bank funds. a. increase; increase b. increase; decrease c. decrease; decrease d. A and C

answer

D

question

The ____ consists of seven members, each of whom is appointed by the President of the United States. a. Federal Open Market Committee (FOMC) b. Federal Advisory Council c. Board of Governors d. none of the above

answer

C

question

Assume that the reserve requirement ratio is 12 percent and that the Fed uses open market operations by buying $200 million worth of Treasury securities. Assuming that banks use all funds except required reserves to make loans and that the public does not store any cash, the money supply should ____ by about ____. a. increase; $200 million b. increase; $1.67 billion c. decrease; $200 million d. decrease; $1.67 billion

answer

B

question

The federal funds rate is the rate at which the Fed lends money directly to member banks. a. True b. False

answer

T

question

When the Fed purchases securities, the total funds of commercial banks ____ by the market value of securities purchased by the Fed. This activity initiated by the FOMC's policy directive is referred to as a(n) ____ of money supply growth. a. increase; loosening b. decrease; tightening c. decrease; loosening d. increase; tightening e. none of the above

answer

A

question

The Trading Desk is sometimes directed to ____ a sufficient amount of Treasury securities that will ____ the federal funds rate to a new targeted level set by the FOMC. a. buy; decrease b. sell; increase c. buy; increase d. sell; decrease e. A and B

answer

E

question

Which of the following statements is incorrect with respect to a single European monetary policy? a. It allows for more consistent economic conditions across the countries. b. It prevents any participating European country from solving local economic problems with its own unique monetary policy. c. A policy used in a particular period may not affect the participating countries equally, since they all have the same currency. d. Each participating country will still be able to apply its own fiscal policy (tax and government expenditure decisions). e. All of the above are true with respect to a single European monetary policy.

answer

E

question

Since 2003, the Fed's rate on short-term loans to depository institutions is referred to as the a. discount rate. b. primary credit lending rate. c. Federal funds rate. d. prime rate

answer

B

question

____ credit extended by the Fed to financial institutions may be used for any purpose and is available only to depository institutions that satisfy specific criteria reflecting financial soundness. a. Primary b. Secondary c. Tertiary d. None of the above

answer

A

question

Most of the Fed's income is transferred to the U.S. Department of Justice. a. True b. False

answer

F

question

All commercial banks are required to be members of the Fed. a. True b. False

answer

F

question

Each member of the Board of Governors is appointed by the president of the United States and serves a nonrenewable 14-year term. a. True b. False

answer

T

question

Each Federal Reserve district bank is responsible for reporting its regional conditions, and all of these reports are consolidated to compose the Beige Book. a. True b. False

answer

T

question

When the Trading Desk sells a sufficient amount of Treasury securities, it creates a surplus of funds in the banking system. Consequently, the federal funds rate decreases along with other interest rates. a. True b. False

answer

F

question

Adjustment of the primary credit lending rate is the most common means by which the Fed controls the money supply. a. True b. False

answer

F

question

To increase the money supply, the Trading Desk would be instructed to sell government securities. a. True b. False

answer

F

question

To increase the money supply, the Fed may increase the reserve requirement ratio. a. True b. False

answer

F

question

Which of the following is not true with respect to the Federal Reserve Act of 1913? a. It established reserve requirements for member commercial banks. b. It specified fourteen districts across the United States as well as a city in each district where a Federal Reserve district bank was to be established. c. Each district focused on its particular district, without much concern for other districts. d. All of the above are true.

answer

B

question

____ is (are) not a component of the Fed as it exists today. a. The Federal Advisory Council b. The Board of Governors c. National banks d. The U.S. Department of Commerce e. All of the above are components of the Fed.

answer

D

question

The advisory committee making recommendations to the Fed about economic and banking related issues is the a. Consumer Advisory Council. b. Thrift Institutions Advisory Council. c. Federal Advisory Council. d. none of the above

answer

C

question

The advisory committee offering views on issues related to credit unions is the a. Consumer Advisory Council. b. Thrift Institutions Advisory Council. c. Federal Advisory Council. d. none of the above

answer

B

question

If the Fed desires to ____ the money supply using open market operations, it would instruct the trading desk to ____ government securities. a. increase; purchase b. increase; sell c. decrease; purchase d. Answers B and C are correct.

answer

A

question

When the Fed buys Treasury bills as a means of increasing the money supply, it places ____ pressure on their prices and ____ pressure on their yields. a. upward; upward b. downward; downward c. upward; downward d. downward; upward

answer

C

question

To increase the money supply growth, the Fed could a. sell government securities in the secondary market. b. increase the primary credit lending rate. c. increase the reserve requirement ratio. d. all of the above e. none of the above

answer

E

question

When the Fed sells securities, the total funds of commercial banks ____ by the market value of securities sold by the Fed. This activity initiated by the FOMC's policy directive is referred to as a ____ of money supply growth. a. increase; loosening b. decrease; loosening c. increase; tightening d. decrease; tightening e. none of the above

answer

D

question

____ includes only currency held by the public and checking deposits as well as savings accounts and small time deposits, money market deposit accounts, and some other items. a. M1 b. M2 c. M3 d. None of the above

answer

B

question

The ____ consists of seven members, each of whom is appointed by the president of the United States. a. Federal Open Market Committee (FOMC) b. Federal Advisory Council c. Board of Governors d. none of the above

answer

C

question

The Fed's primary goal has historically been to add liquidity to the mortgage market by continuously purchasing mortgage-backed securities. a. True b. False

answer

F

question

When the Fed purchases _______, it is attempting to directly stimulate the housing market. a. commercial paper b. short-term Treasury securities c. mortgage-backed securities d. consumer loans

answer

C

question

The Fed's purchases of long-term Treasury securities in recent years were intended to: a. reduce long-term interest rates. b. reduce interest rates on credit cards and consumer loans. c. increase the federal funds rate. d. restore confidence in the market for these securities.

answer

A

question

A criticism of the Fed's actions during the credit crisis is that it: a. did not attempt to increase the liquidity of the debt markets. b. focused too much on financial institutions. c. allowed Bear Stearns to fail and file for bankruptcy. d. periodically raised the primary credit rate.

answer

B

question

Which of the following did the Fed not do during the credit crisis? a. purchase mortgage-backed securities b. purchase commercial paper c. reduce the targeted federal funds rate d. prevent depository institutions from obtaining funding through the discount window

answer

D

question

The Fed can affect the interaction between the demand for money and the supply of money to influence interest rates, the aggregate level of spending, and therefore economic growth. a. True b. False

answer

T

question

The Fed can ____ the level of spending as a means of stimulating the economy by ____ the money supply. a. increase; decreasing b. decrease; increasing c. decrease; decreasing d. increase; increasing

answer

D

question

A credit crunch occurs when: a. interest rates decline. b. interest rates rise. c. creditors restrict the amount of loans they are willing to provide. d. the economy is strong.

answer

C

question

According to the theory of rational expectations, higher inflationary expectations encourage businesses and households to reduce their demand for loanable funds. a. True b. False

answer

F

question

A passive monetary policy adjusts money supply automatically in response to economic conditions. a. True b. False

answer

F

question

If the Fed implemented a policy of inflation targeting, and if the U.S. inflation rate deviated substantially from the Fed's target inflation rate, the Fed could lose credibility. a. True b. False

answer

T

question

In general, there is: a. a positive relationship between unemployment and inflation. b. an inverse relationship between unemployment and inflation. c. an inverse relationship between GNP and inflation. d. a positive relationship between GNP and unemployment.

answer

B

question

A ____-money policy can reduce unemployment, and a ____-money policy can reduce inflation. a. tight; loose b. loose; tight c. tight; tight d. loose; loose

answer

B

question

A loose money policy tends to ____ economic growth and ____ the inflation rate. a. stimulate; place downward pressure on b. stimulate; place upward pressure on c. dampen; place upward pressure on d. dampen; place downward pressure on

answer

B

question

When both inflation and unemployment are relatively high, there is more disagreement among FOMC members about the proper monetary policy to implement. a. True b. False

answer

T

question

____ serves as the most direct indicator of economic growth in the United States. a. Gross domestic product (GDP) b. National income c. The unemployment rate d. The industrial production index

answer

A

question

Which of the following is not an indicator of inflation? a. housing price indexes b. wage rates c. oil prices d. consumer confidence surveys

answer

D

question

The ____ indicators tend to occur before a business cycle. a. leading b. lagging c. coincident d. none of the above

answer

A

question

The ____ indicators tend to occur after a business cycle. a. leading b. lagging c. coincident d. none of the above

answer

B

question

The ____ indicators tend to occur before a business cycle. a. leading b. lagging c. coincident d. none of the above

answer

C

question

The time lag between when an economic problem arises and when it is reported in economic statistics is the a. recognition lag. b. implementation lag. c. impact lag. d. open-market lag.

answer

A

question

The time between when an economic problem is realized and when the Fed tries to correct it with its policies is the a. recognition lag. b. implementation lag. c. impact lag. d. open-market lag.

answer

B

question

The time between when the Fed adjusts the money supply and when interest rates change reflects the a. recognition lag. b. implementation lag. c. impact lag. d. open-market lag.

answer

C

question

If the Fed attempts to reduce inflation, it would likely increase money supply growth. a. True b. False

answer

F

question

Which of the following best describes the relationship between the Fed and the Administration? a. The Fed must receive approval by the Administration before conducting monetary policy. b. The Fed must implement a monetary policy specifically to the support the Administration's policy. c. The Administration must receive approval from the Fed before implementing fiscal policy. d. A and C e. none of the above

answer

E

question

A high budget deficit tends to place ____ pressure on interest rates; the Fed's tightening of the money supply tends to place ____ pressure on interest rates. a. upward; upward b. upward; downward c. downward; downward d. downward; upward

answer

A

question

The Fed is usually more willing to monetize the debt when inflation is relatively high. a. True b. False

answer

F

question

International flows of funds can affect the Fed's monetary policy. For example, if there is downward pressure on U.S. interest rates that can be offset by foreign ____ of funds, the Fed may not feel compelled to use a ____ monetary policy. a. inflows; loose b. inflows; tight c. outflows; loose d. outflows; tight e. none of the above

answer

D

question

Costner National, a commercial bank, obtains short-term deposits and makes long-term fixed-rate loans. It should be adversely affected when the Fed: a. monetizes the debt. b. maintains a stable money supply. c. uses a tight-money policy. d. uses a loose-money policy.

answer

C

question

The ____ lag represents the time from when an economic problem exists until it is recognized. a. recognition b. adjustment c. implementation d. none of the above

answer

A

question

A ____ dollar tends to exert inflationary pressure in the U.S. a. stable b. strong c. weak d. both A and B

answer

C

question

According to the theory of rational expectations, ____ inflationary expectations encourage businesses and households to ____ their demand for loanable funds in order to borrow and make planned expenditures increase. a. higher; reduce b. higher; increase c. lower; reduce d. lower; increase

answer

B

question

Historical evidence has shown that, when the Fed significantly increases money supply, U.S. inflation tends to ____ shortly thereafter which in turn places ____ pressure on U.S. interest rates. a. increase; upward b. increase; downward c. decrease; downward d. decrease; upward

answer

A

question

If the Fed uses a passive monetary policy during weak economic conditions, a. it increases money supply substantially. b. it reduces money supply substantially. c. it allows the economy to fix itself. d. it focuses on monetizing the debt.

answer

C

question

Which of the following is true? a. Federal deficits require that the Fed purchase government securities. b. Federal deficits will always result in an increase in money supply. c. The Federal Reserve monetizes debt by selling securities which ultimately increases money supply. d. An agreement between the Fed and the Treasury exists whereby the Fed is directly responsible for monetizing the debt whenever the deficit increases. e. None of the above.

answer

E

question

Inflation is commonly the result of a a. large budget deficit. b. high level of interest rates. c. high level of unemployment. d. high level of aggregate demand.

answer

D

question

According to the theory of rational expectations, if the Fed uses open market operations in order to increase the supply of loanable funds, the ultimate effect on interest rates is definitely a. a reduction in interest rates. b. an increase in interest rates. c. no effect on the interest rates. d. the impact on interest rates cannot be determined.

answer

D

question

The Federal Reserve would be most inclined to use a stimulative monetary policy to cure a recession if oil prices are a. low and steady. b. low, but rising. c. very high, but declining slightly. d. very high and rising.

answer

A

question

Global crowding out is described in the text to mean the impact of a. excessive U.S. population growth on interest rates. b. excessive global population growth on interest rates. c. an excessive budget deficit in one country on interest rates of another country. d. an excessive budget deficit in one country on exchange rates.

answer

C

question

If the federal government is willing to pay whatever is necessary to borrow loanable funds, but the private sector is not, this reflects a. the crowding-out effect. b. dynamic open market operations. c. defensive open market operations. d. monetizing the debt.

answer

A

question

When the Fed uses open market operations by purchasing Treasury securities from various financial institutions in the U.S., there will be a. an outward shift in the supply schedule of loanable funds. b. an inward shift in the supply schedule of loanable funds. c. no shift in the supply schedule of loanable funds. d. an inward shift in the demand schedule for loanable funds.

answer

A

question

When the Fed uses open market operations by selling some of its Treasury securities to investors in the U.S., there will be a. an outward shift in the supply schedule of loanable funds. b. an inward shift in the supply schedule of loanable funds. c. no shift in the supply schedule of loanable funds. d. an outward shift in the demand schedule for loanable funds.

answer

B

question

Which of the following is not a disadvantage of inflation targeting? a. If the U.S. inflation rate deviates substantially from the Fed's target inflation rate, the Fed could lose credibility. b. The Fed's complete focus on inflation could result in a much higher unemployment level. c. The Fed's complete focus on inflation could result in much higher interest rates, which would discourage economic growth. d. All of the above are disadvantages of inflation targeting.

answer

C

question

Financial institutions such as commercial banks, bond mutual funds, insurance companies, and pension funds maintain large portfolios of bonds, so their portfolio is ____ affected when the Fed ____ interest rates. a. unfavorably; decreases b. unfavorably; increases c. favorably; increases d. Answer A and C are correct.

answer

B

question

According to the theory of rational expectations, higher inflationary expectations encourage businesses and households to reduce their demand for loanable funds. a. True b. False

answer

F

question

A passive monetary policy adjusts money supply automatically in response to economic conditions. a. True b. False

answer

F

question

If the Fed implemented a policy of inflation targeting, and if the U.S. inflation rate deviated substantially from the Fed's target inflation rate, the Fed could lose credibility. a. True b. False

answer

T

question

If the Fed attempts to reduce inflation, it would likely increase money supply growth. a. True b. False

answer

F

question

The relationship between the interest rate on loanable funds and the level of business investment is positive. a. True b. False

answer

F

question

The supply schedule of loanable funds indicates the quantity of funds that would be demanded at various possible interest rates. a. True b. False

answer

F

question

To correct excessive inflation, the Fed could use open market operations by buying Treasury securities in the secondary market. a. True b. False

answer

F

question

One of the disadvantages of inflation targeting is that the Fed could lose credibility is the U.S. inflation rate deviates substantially from the Fed's target inflation rate. a. True b. False

answer

T

question

Economists who work at the Fed recognize that a stimulative monetary policy will not always cure a high unemployment rate and could even ignite inflation. a. True b. False

answer

T

question

An attempt by the Fed to stimulate the economy by reducing short-term interest rates may have a limited effect if long-term interest rates remain unaffected. a. True b. False

answer

T

question

The Fed needs the approval of the presidential administration to make decisions. a. True b. False

answer

F

question

The Fed is more likely to use a stimulative policy during a strong-dollar period. a. True b. False

answer

T

question

A purchase of Treasury securities by the Fed leads to a(n) ____ in interest rates and a(n) ____ in the level of business investment. a. increase; decrease b. decrease; decrease c. increase; increase d. decrease; increase

answer

D

question

Which of the following is probably not a goal the Fed is trying to achieve consistently? a. low inflation b. high interest rates c. steady GNP growth d. low unemployment

answer

B

question

The ____ is not an indicator of economic growth. a. producer price index b. gross domestic product c. national income d. unemployment rate e. All of the above are indicators of economic growth.

answer

A

question

Which of the following is not true with respect to inflation targeting? a. The Fed could lose credibility is the inflation rate deviates substantially from the Fed's target inflation rate. b. A complete focus on inflation could result in a much higher unemployment rate. c. Inflation targeting may not only satisfy the inflation goal, but could also achieve the employment stabilization goal in the long run. d. If unemployment is slightly higher than normal, while inflation is at the peak of the target range, and inflation targeting approach would like advocate a loose monetary policy.

answer

D

question

A ____ economic indicator tends to rise or fall a few months after business-cycle expansions and contractions. a. leading b. coincident c. lagging d. none of the above

answer

C

question

A weak dollar would stimulate ____, discourage ____, and ____ the U.S. economy. a. U.S. exports; U.S. imports; weaken b. U.S. exports; U.S. imports; stimulate c. U.S. imports; U.S. exports; stimulate d. none of the above

answer

B

question

The interest rate that the Fed targets for its monetary policy is the: a. commercial paper rate. b. federal funds rate. c. Treasury bond coupon rate. d. 1-year certificate of deposit rate.

answer

B

question

When the Fed purchases Treasury securities, the account balances of the investors who sell their securities to the Fed _________, and there are _________ in the account balances of other financial institutions. a. increase; offsetting decreases b. increase; no offsetting decreases c. decrease; offsetting increases d. decrease; no offsetting increases

answer

B

question

The Fed's monetary policy is commonly intended to alter the supply of funds in the banking system in order to achieve a specific targeted: a. discount rate. b. required reserve requirement. c. federal funds rate. d. prime rate.

answer

C

question

If a firm has a credit risk premium of 3 percent and the Treasury security rate is 4 percent, the firm will be able to borrow at ________. If the Fed implements a monetary policy that raises the Treasury security rate to 6 percent, the cost of borrowing for the firm will be ________. a. 7 percent; 10 percent b. 4 percent; 6 percent c. 7 percent; 9 percent d. 1 percent; 3 percent

answer

C

question

In the "operation twist" strategy used in 2011 and 2012, the Fed sold _______ Treasury securities and used the proceeds to purchase ________ Treasury securities. a. long-term; short-term b. short-term; long-term c. short-term; long-term d. long-term; short-term

answer

B

question

The intent of the Fed's operation twist strategy in 2011 and 2012 was to:. a. increase long-term interest rates. b. require corporations to issue more commercial paper. c. require bond rating agencies to impose higher standards on their ratings. d. reduce long-term interest rates.

answer

D

question

Which of the following is not a reason that a stimulative monetary policy may be ineffective? a. The effects of a stimulative policy may be disrupted by expectations of inflation. b. Retirees who rely on interest income may restrict their spending c. Lending institutions may increase their standards for borrowers, so some potential borrowers may not qualify for loans. d. Higher interest rates encourage individuals to increase their savings.

answer

D

question

In 2012, the Fed stated that it would continue to purchase Treasury bonds in the financial markets until GDP growth increased to a target level. a. True b. False

answer

F

question

Which of the following was not true of the eurozone during the Greek crisis? a. Fear of a financial crisis throughout Europe discouraged investors and firms from moving funds into Europe. b. By using a more stimulative monetary policy than it desired, the European Central Bank aroused concerns about potential inflation in the eurozone. c. There was concern that the austerity conditions could weaken the country's economy further. d. Greece, Spain, and Portugal focused their efforts on reducing tax rates in order to stimulate their economies.

answer

D

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