Ben and alan work for the federal reserve, the agency that oversees banking and monetary policy in the united states. although they are good friends, they disagree over policy decisions. when the housing bubble burst in 2008, the friends offer different strategies to address the issue. ben argues that the federal reserve should lower interest rates, and alan says interest rates should be held steady. use this information to answer the questions.
(a)-by saying that interest rates should be held steady, alan is showing his support for what belief?
(b)- not agreeing with alan, ben supports lowering interest rates. demonstrating his belief in what concept?
(c)- which of the following situations presents the greatest difficulty for policy makers?
(i)- deflation
(ii)- stagflation
(iii)- inflation
(iv)- conflation

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