What does inflation do to the value of the oversimplified multiplier?
a. Inflation increases the value of the multiplier above the value of the oversimplified formula.
b. Inflation does not change the value of the multiplier.
c. Inflation decreases the value of the multiplier below the value of the oversimplified formula.
d. Inflation increases the value of the multiplier unless the level of unemployment also rises.
c
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Fogel's (1964) work on railroads after the Civil War shows that they did not dominate the markets for steel, coal or wood
Indicate whether the statement is true or false
Easy monetary policy reduces the real interest rate, which ________ the demand for dollars, ________ the supply of dollars, and ________ the equilibrium value of the dollar.
A. decreases; increases; decreases B. increases; increases; increases C. increases; decreases; increases D. decreases; decreases; decreases
Describe, in general terms, the strategy of monetary policy, explaining how monetary-policy tools are used to achieve the goals of monetary policy. What intermediate stages are important in going from tools to goals? What are the links between the different stages? How does the Federal Reserve use this strategy today?
What will be an ideal response?
A theory of taxation that states that ________ is the ability-to-pay principle.
A. citizens should bear tax burdens in line with their ability to pay taxes B. taxpayers should contribute to the government in a greater proportion than the benefits they receive from public expenditures C. taxpayers should contribute to the government in a smaller proportion than the benefits they receive from public expenditures D. taxpayers should contribute to the government in proportion to the benefits they receive from public expenditures