Which of the following is true of inflation?
A. It occurs when the demand for a particular currency is more than the supply
B. It occurs when securities are purchased in one market for immediate resale in another.
C. It occurs when two parties agree to exchange currency and execute a deal at a specific date in the future.
D. It occurs when the quantity of money in circulation rises faster than the stock of goods and service.
E. It occurs when output increases faster than the money supply.
Answer: D. It occurs when the quantity of money in circulation rises faster than the stock of goods and service.
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Every spring, motorists do more driving than during the winter months. Every spring, the price of gasoline increases and the motorists buy more gasoline. This experience suggests that the
A) "law of supply" does not always hold for necessities like gasoline. B) "law of demand" does not always hold for necessities like gasoline. C) laws of supply and demand are both contradicted for gasoline, though only during the spring driving season. D) None of the above answers are correct.
Besides rewarding discoveries, patents can also prevent them
Indicate whether the statement is true or false
The price controls on consumer goods during World War II led to
a. permanent surpluses. b. stable long-term prices. c. a burst of inflation when they were ended. d. increased production of consumer goods to satisfy demand.
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What will be an ideal response?