In a classic paper, Columbia University economist Phillip Cagan drew the line between inflation and hyperinflation at an inflation rate of

A) 50 percent per month.
B) 10 percent per month.
C) 20 percent per month.
D) 5 percent per month.
E) 25 percent per month.


A

Economics

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The Fed can close a recessionary gap by:

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Do policy makers know the exact value of the fiscal multiplier?

a. No, economists have almost no idea of the value of fiscal multipliers. b. No, they are not known with complete accuracy. c. Yes, economists know the precise value of the multiplier. d. Yes, although there is a very small range of uncertainty in the value.

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Which of the following is a monetary policy tool that is meant to reduce interest rates and stimulate the economy?

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Economics