If inflation increased to 4% and unemployment was listed at 8%, which of the following policies would an economist most likely recommend using?

e) Increase personal income taxes and sell securities bonds.

Explanation:

Here is the complete question with option: If inflation increased to 4% and unemployment was listed at 8%, which of the following policies would an economist most likely recommend using?

a) Sell bonds and decrease personal income taxes.

b) Decrease funding for road projects and decrease the discount road.

c) Decrease the reserve requirement and buy bonds.

d) increase defence spending and increase the discount rate.

e) Increase personal Income taxes and sell securities bonds.

As per Phillips curve, unemployment has inverse relationship with the rate of inflation. Therefore, if personal income taxes increases, the rate of inflation will be reduced and selling securities bonds will generate income for Government, which will help to increase the investment and it will help to reduce unemployment.

yes the correct answer was

b.the increased supply will create a surplus.    

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.