What is the relationship between money growth and inflation across countries? Does your answer support the quantity theory of money?
What will be an ideal response?
The international evidence shows that the money growth rate and inflation rate are positively related. While the correlation is not precise, it is generally high.
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In the figure above, the marginal rate of substitution (MRS) at point A is equal to ________ pounds of pickles per pound of olives
A) 8 B) 6 C) 1 1/3 D) 2
Why don't people take into consideration the external costs of their actions and reduce the amount of externalities?
What will be an ideal response?
If a firm can segment its market, and the parts cannot communicate among themselves, then
A) arbitrage can occur. B) prices in the segments will tend to be equal over time. C) arbitrage cannot occur. D) the different elasticities will be equal over time.
To move the allocation of resources closer to the social optimum, policymakers should typically try to induce firms in an oligopoly to
a. compete rather than cooperate with each other. b. collude with each other. c. form various degrees of cartels. d. cooperate rather than compete with each other.