Comparisons of the link between the growth of the money supply and inflation indicate that
a. countries with high rates of monetary growth also experience high inflation.
b. countries with high rates of monetary growth experience low inflation.
c. monetary growth rates and inflation are unrelated.
d. inflation is primarily the result of restrictive monetary policy.
A
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According to the classical economists, an economy producing $15 trillion in goods and services
A) may be producing too much since the needs of people may not be this great. B) could experience a permanent glut if no one has estimated the demand for goods and services in the economy. C) simultaneously generates the income necessary to purchase $15 trillion in goods and services. D) is supplying $15 trillion in goods and services, but could be demanding more or less than $15 trillion in goods and services for a very long period of time.
A significant portion of the increase in state tax revenues from 1950 to 1970 was because _____
a. of high inflation b. of increased economic growth due to the Korean conflict c. many states adopted new tax bases they had previously not taxed d. increased property tax rates
If we observe an increase in the price of a good and an increase in the amount of the good bought and sold, this could be explained by
a. an increase in the supply of the good. b. an increase in the demand for the good. c. a decrease in the demand for the good. d. a decrease in the supply of the good.
A political failure of a trade embargo is most likely to occur if
A. the target country is a dictatorship and the dictatorship is jeopardized by retreating from the policy that provoked the embargo. B. the embargo imposes more damage on the target country than on the country imposing the embargo. C. the target country is a colony of the imposing country and the embargo adversely affects the imposing country. D. the imposing country is a relatively smaller country than the target country in terms of trade volume.