Monetarists blame rising government deficits for rising inflation
A) because deficits shift aggregate demand to the right.
B) so long as the aggregate supply curve is vertical.
C) when financing these deficits involves money creation.
D) because the deficits increase the demand for money and thus interest rates.
C
You might also like to view...
Joanne left her last job, in which she was earning $50,000, in order to form her own consulting business. Her revenues for the first year of consulting were $210,000. During that year, she hired two assistants for $25,000 each and spent $25,000 on office equipment. In addition, she incurred $75,000 in miscellaneous expenses. Her accounting profit that first year was
A) $10,000. B) $60,000. C) $210,000. D) $50,000.
Perfectly competitive firms are price takers because
a. all small firms must take the price set by the largest firm in the market b. firms take the price that government determines is a "fair" price c. each firm is small and goods are perfect substitutes for one another d. free entry and exit in the short run creates a constant market price in the long run e. high barriers to entry force firms to compete by charging lower prices than other firms in the industry
Data on the U.S. income distribution suggest that
a. black-white income differentials have decreased b. black-white income differentials have increased c. the distribution of income among blacks is more uneven than the overall distribution of income d. the distribution of income among blacks is less uneven than the overall distribution of income e. the distribution of income among blacks follows approximately the same pattern as the overall distribution of income
A market in which businesses, households, and governments buy and sell national currencies is
A. the dollar exchange market. B. the currency exchange market. C. the money exchange market. D. the foreign exchange market.