Imagine that you just saw a headline on a news web site that read “High Inflation Could Be Ending: Fed Takes Strong Action.” The nation is most likely in which part of the Business Cycle?
Economics - Financial Markets
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Erika, The answer s eems most likely to be "a peak" as it says "high inflation could be ending". I have no idea what they mean by Fed takes strong action, as in the case of a PEAK it would be on the side lines. Now if the answer is a "recession" then the Fed would be lower interest rates by expanding the money supply, wnw
if some country talks about high inflation could be ending, and FED or the central bank of the country takes the strong action. it sounds that a strong action is always needed when we are in tough situations...if we are in expansion situation, we will be taking a strategic actions...So the answer will be the a " tough business cycle."