In the long run, holding all else constant, inflation requires a decrease in the money supply relative to the output of goods and services—not enough money chasing too many goods
Indicate whether the statement is true or false
False
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A movement from point N to point L would represent
A. an increase in both consumer goods and capital goods.
B. a decrease in both consumer goods and capital goods.
C. an increase in consumer goods, but a decrease in capital goods.
D. an increase in capital goods, but a decrease in consumer goods.
The price received by sellers in a market will decrease if the government
a. imposes a binding price floor in that market. b. decreases a binding price ceiling in that market. c. decreases a tax on the good sold in that market. d. increases a binding price floor in that market.
Suppose that the country of Argentina has an 6% real interest rate and an expected inflation rate of 10%. Which of the following is the best estimate of the nominal interest rate in the country?
a. 16% b. 8% c. 4% d. 18% e. none of the above
What might happen to a county's economy and standard of living without property rights?
A. Increase because people will be producing more goods and services B. Stay the same C. Increase because there are more inventive to produce goods and services D. Decrease because there are fewer incentives to produce goods and services