According to the Monetarists, the primary cause of inflation is:
A. large budget deficits.
B. high taxes.
C. rapid expansion of the money supply.
D. government expenditures that are large relative to the size of the economy.
Answer: C
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Entrepreneurs play a key role in which type of economy?
A) command economy B) centrally planned economy C) market economy D) all of the above
If France has a trade deficit, then
A) imports into France exceed exports from France. B) exports from France exceed imports into France. C) imports into the United States from France exceed exports from the United States into France. D) imports into France from the United States exceed exports from France into the United States.
In Figure 4.1, the demand curve that is perfectly inelastic is on graph:
A. A. B. B. C. C. D. D.