Evidence from the United States and other foreign countries indicates that
A) there is a strong positive association between inflation and growth rate of money over long periods of time.
B) there is little support for the assertion that "inflation is always and everywhere a monetary phenomenon."
C) countries with low monetary growth rates tend to experience higher rates of inflation, all else being constant.
D) money growth is clearly unrelated to inflation.
A
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If bonds and stocks are considered to be substitute goods, and the investors expect stock prices to drop in the near future, _____
a. the price of bonds will also decline b. the supply of bonds will increase c. the interest rate on bonds will decline d. the demand for stocks will increase e. the demand for bonds will decline
The concept of double coincidence of wants refers to the fact that:
a. for a financial asset to be exchanged, it needs to be priced correctly. b. for barter to take place, both parties must accept what the other party has to offer. c. people can never exactly agree on an equilibrium price. d. different people value goods differently. e. for barter to take place, both parties must have equal quantities of the same good.
Which of the following provides the best explanation of why money is valuable?
a. Money is valuable because it is declared legal tender by the government issuing it. b. Money is valuable because it is scarce relative to the demand for the services it provides. c. Money is valuable because it is backed by precious metals, primarily gold and silver. d. Money is valuable because it has intrinsic value, independent of its use as a means of exchange.
Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC abide by the agreement, then OPEC's profit will be $200 million and Mexico's profit will be $100 million. If both Mexico and OPEC cheat on the agreement, then OPEC's profit will be $175 million and Mexico's profit will be $80 million. If only OPEC cheats, then OPEC's profit will be $185 million, and Mexico's profit will be $60 million. If only Mexico cheats, then Mexico's profit will be $110 million, and OPEC's profit will be $150 million.This game is ________ because ________.
A. a prisoner's dilemma; not cheating is better for both B. a prisoner's dilemma; cheating is better for both C. not a prisoner's dilemma; OPEC does not have a dominant strategy D. not a prisoner's dilemma; cheating is better for both