The classical theory of inflation
a. is also known as the quantity theory of money.
b. was developed by some of the earliest economic thinkers.
c. is used by most modern economists to explain the long-run determinants of the inflation rate.
d. All of the above are correct.
d
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What is the role of value judgments in economic analysis?
What will be an ideal response?
The figure above shows Ilene's budget line. If her dog, Muffin, runs away and she adopts another cat, named Sphynx, the budget line shown in the figure will
A) become flatter. B) become steeper. C) shift outward (because cats eat less). D) not move.
The velocity of circulation is the
a. speed at which the multiplier takes effect. b. speed at which money circulates. c. speed at which tax cuts get spent. d. rate at which money creation takes place.
After the imposition of the quota, the quantity demanded of TVs is ________.
A. 100,000 B. 80,000 C. 40,000 D. 20,000