Which of the following policies might create demand-pull inflation?
A. An increase in taxes
B. An increase government spending
C. An increase in interest rates
D. All of these policies could create demand-pull inflation
Answer: B
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Suppose you have surveyed a few industries and obtained information about the income elasticity of demand for their products
If you expect that the economy is headed for a long recession, you would advise people to look for jobs in an industry with A) a "low" negative income elasticity coefficient such as -0.2. B) a high positive income elasticity coefficient such as 5. C) a low positive income elasticity coefficient such as 0.8. D) a "high" negative income elasticity coefficient such as -4.
A bond that is generally agreed to have higher default risk will experience all of the following EXCEPT:
A) declining demand B) declining supply C) higher yield D) lower price
When supply falls and demand remains the same, equilibrium price _____ and equilibrium quantity ________.
A. rises; rises B. falls; falls C. falls; rises D. rises; falls
What problems arise in interpreting unemployment data?