Demand-pull inflation has its most extreme effect on a nation's price level in the:
a. Keynesian range.
b. Twilight zone.
c. Intermediate range.
d. Classical range.
e. Somewhere over the rainbow.
.D
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According to new growth theory, as technology becomes more important to growth, so does
A) increasing taxes. B) human capital. C) military spending. D) increasing trade barriers.
When a government chooses to have a zero deficit with regard to revenues and spending, it is operating with what kind of budget?
A) a slow economy budget B) a balanced budget C) a conservative budget D) a taxpayer-based budget
If the representative basket of European goods and services costs 40 euros, the representative U.S. basket costs $50, and the dollar/euro exchange rate is $0.90 per euro, then the price of the European basket in terms of U.S. basket is
A) [(0.9 $/euro) (40 euro per a European basket)]/[(50 $/U.S. basket)]. B) [(0.9 $/euro) (50 $/U.S. basket)]/[(40 euro per a European basket)]. C) [(40 euro per a European basket)]/[(50 $/U.S. basket) (0.9 $/euro)]. D) [(50 $/U.S. basket)]. E) [(0.9 $/euro) (40 euro per a European basket) (50 $ U.S. basket)].
The demand for money curve depicts
A) an inverse relationship between the quantity of money demanded and the quantity of bonds demanded. B) a direct relationship between the quantity of money demanded and the quantity of bonds demanded. C) an inverse relationship between the quantity of money demanded and the interest rate. D) a direct relationship between the quantity of money demanded and the interest rate.