In quantity theory terms, during a hyperinflation,
A) money supply increases rapidly, but velocity does not
B) velocity increases rapidly, but money supply does not
C) both the money supply and velocity increase rapidly
D) neither the money supply nor velocity increase rapidly
C
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A budget surplus means that
A. government expenditures are greater than revenues in a given year. B. government revenues are greater than expenditures in a given year. C. a nation's imports are greater than its exports. D. a nation's exports are greater than its imports.
Joe's income is $500, the price of food (F, y-axis) is $2 per unit, and the price of shelter (S, x-axis) is $100. Which of the following represents his marginal rate of transformation of food for shelter?
A) -5 B) -50 C) -.02 D) None of the above.
The derived demand for borrowed funds has the characteristic negative slope of any demand curve
a. True b. False Indicate whether the statement is true or false
Stagflation implies that
A) a tradeoff between inflation and unemployment may not always exist. B) policymakers can choose to have less unemployment if they are willing to accept a higher rate of inflation. C) the short-run Phillips curve is stable. D) the short-run Phillips curve is vertical.