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Step1: Console to ASW1 from PC console 1
ASW1(config)#aaa new-model
ASW1(config)#radius-server host key rad123
ASW1(config)#aaa authentication dot1x default group radius
ASW1(config)#dot1x system-auth-control
ASW1(config)#inter fastEthernet 0/1
ASW1(config-if)#switchport mode access
ASW1(config-if)#dot1x port-control auto
ASW1#copy run start
Step2: Console to DSW1 from PC console 2
DSW1(config)#ip access-list standard 10
DSW1(config)#vlan access-map PASS 10
DSW1(config-access-map)#match ip address 10
DSW1(config-access-map)#action forward
DSW1(config)#vlan access-map PASS 20
DSW1(config-access-map)#action drop
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Which of the following actions is the acknowledged preventive measure for a period of deflation?
A. Decreasing interest rates.
B. Increasing the money supply.
C. Increasing interest rates.
D. Decreasing the money supply.
Answer: B
Choice "b" is correct. Deflation is a general decline in the overall price level (i.e., when the inflation rate is
negative). Increasing the money supply causes the overall price level to rise. As a result, it helps eliminate
deflation. Choice "a" is incorrect. Increasing interest rates causes aggregate demand to shift left. As a
result, the aggregate price level will fall even further. This will exasperate deflation. Choice "c" is not
wrong but it is not as good an answer as "b". A decrease in interest rates causes the aggregate demand
curve to shift right. As a result, the aggregate price level will rise. This helps eliminate deflation. However,
there are times when interest rates are already so low that lowering interest rates is not an option. Thus,
the preferred or "acknowledged" preventative measure for deflation is increasing the money supply.
Choice "d" is incorrect. Decreasing the money supply causes the overall price level to fall. This would
obviously exasperate deflation.

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