If we look at the value of money in terms of how many units of a good it takes to buy one dollar, then inflation means:
A. it would take fewer goods to buy the same dollar.
B. it would take more goods to buy the same dollar.
C. the same number of goods would buy fewer dollars.
D. it would take fewer dollars to buy the same goods.
Answer: A
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All types of capital
a. are forms of resources that can be used in future production b. require a physical existence c. earn an economic rent d. yield profits for their owners e. require obtaining more education and job skills
If a perfectly competitive industry is taken over by a monopolist,
a. output will always rise b. output will always fall c. market price will probably not change d. marginal cost will approach average variable cost in the long run e. market price could fall if there are large gains from technological changes under monopoly
Which of the following is an example of a discretionary fiscal policy action?
A. a decrease in tax revenues as taxpayers' incomes decrease B. increasing the minimum wage rate C. raising regulations in the banking industry D. an increase in government spending to deal with a recession
Modern work in economic history by people like Robert Fogel (1964) and Albert Fishlow (1965) shows
(a) that railroads were the indispensable key to rapid economic growth in the 19th century. (b) that the levels of Gross National Product (GNP) reached in 1890 would have been reached in 1880 had it not been for reckless railroad speculation. (c) that less than 5% of the country's late 19th-century economic growth was attributable to railroads. (d) none of the above.