An analysis of countries experiencing rapid inflation indicates that inflation is generally
a. caused by strong labor unions that push wages up rapidly.
b. caused by rapid growth in the money supply.
c. the result of restrictive macroeconomic policy, which pushes up interest rates.
d. the result of bad weather conditions that reduce the supply of agriculture products.
B
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A tax is efficient if
A) it is based on profits earned and not on wages. B) it imposes a small excess burden relative to the revenue it raises. C) it encourages saving and investment. D) individuals with the lowest incomes pay proportionately lower taxes than individuals with the highest incomes.
An expansionary monetary policy in the United States should
A) cause the dollar to appreciate. B) decrease the foreign currency price of U.S. exports. C) decrease net exports. D) decrease the dollar price of imports.
The value of Austria's exports minus the value of Austria's imports is called
a. Austria's net exports.
b. Austria's net imports.
c. Austria's foreign portfolio investment
d. Austria's foreign direct investment.
How have firms and organizations devised ways to overcome information problems without government intervention? Give three examples
Please provide the best answer for the statement.