1. Neoliberal policymakers will most likely propose austerity policies with the intention of:

A: increasing market regulation to reduce corruption

B: paying back government debts

C: increasing workers' bargaining power

D: promoting rapid GDP growth during a recession

2. Which of the following is the most direct cause of the increase in inflation in the US in 2021?

A: the Federal Reserve bank raising interest rates

B: consumers spending less on goods and more on services

C: corporations raising prices to increase profits

D: workers raising wages as the labor force decreased in size

3. In periods of rapid inflation, which of the following entities is most harmed?

A: a unionized worker who receives a cost of living adjustment (COLA) each year

B: a bank that receives most of its income from interest payments on loans that it has made

C: a household that is paying off a 30-year mortgage loan

D: a college graduate who is working to pay off a large student loan debt

4. The rate of interest that you are paying on a mortgage loan is 3 percent per year. Inflation is running at 4 percent per year. The real rate of interest that you are paying is therefore:

A: negative 1 percent

B: 1 percent

C: 3 percent

D: 7 percent