LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory As DeFi platforms grow, central banks find it harder to control liquidity. Inflation rises, but unemployment does not fall. What is the most accurate reason?

Question

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory As DeFi platforms grow, central banks find it harder to control liquidity. Inflation rises, but unemployment does not fall. What is the most accurate reason?

Answer

DeFi strengthens the traditional inflation–unemployment trade-off by improving liquidity channels.

Answer

DeFi expansion crowds out digital labor, automatically reducing inflation

Answer

Decentralized liquidity weakens policy transmission, allowing inflation to rise independently of labor market conditions.

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LG 1. Knowledge Comprehension LO 1.1. Generate knowledge of core concept and...

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