Which of the following statements is most accurate?
A. As the inflation rate increases, inflation becomes less stable.
B. As the inflation rate decreases inflation becomes less stable.
C. As the inflation rate increases, inflation becomes more stable.
D. As the inflation rate decreases inflation becomes more volatile.
Answer: A
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A bed of oysters is not an example of a factor of production but the shucked oysters used to make oyster stew are a factor of production
Indicate whether the statement is true or false
When nominal interest rates increase, the opportunity cost of holding money will ________, and the quantity of money demanded by households and firms will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
To fight inflation, the government may
a. decrease aggregate demand, which will also lead to lower unemployment rates. b. increase aggregate demand, which will also lead to lower unemployment rates. c. increase aggregate demand, which will also lead to higher unemployment rates. d. decrease aggregate demand, which will also lead to higher unemployment rates.
The consumption function shows an indirect relationship between consumer spending and disposable income
a. True b. False Indicate whether the statement is true or false