According to the classical theory, inflation occurs when the annual rate of growth of the money supply is higher than the annual rate of growth of full-employment real GDP
Indicate whether the statement is true or false
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A $1 million increase in investment spending will raise equilibrium output (real GDP) by:
a. less than $1 million. b. exactly $1 million. c. between $0.5 and $1.5 million. d. more than $1 million.
An example of an explicit cost of production would be the
a. cost of forgone labor earnings for an entrepreneur. b. lost opportunity to invest in capital markets when the money is invested in one's business. c. lease payments for the land on which a firm's factory stands. d. Both a and c are correct.
Finding a way to create and capture value is part of
A. business strategy. B. organizational structure. C. management control, but not general management. D. cost control systems.
The relationship between the rate of return earned on a bond and the length of time until the bond matures is called the
A. real interest rate. B. interest rate. C. yield curve. D. calendar.