The cost of inflation will be minimized if:
A) the growth rate of inflation equals the rate of growth of wages.
B) taxes are increased during the periods of high inflation.
C) money supply is increased during times of high inflation.
D) the growth rate of inflation exceeds the rate of growth of wages.
A
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Equilibrium is reached where there is no inherent force causing quantity supplied or quantity demanded to change.
Answer the following statement true (T) or false (F)
When the Federal Funds rate is above the Federal Reserve's target, it will ____ bonds to _____ the money supply
Fill in the blank(s) with correct word
The act of buying a commodity in one market at a lower price and selling it in another market at a higher price is known as:
A. buying long. B. selling short. C. a tariff. D. arbitrage.
The individual firm which hires labor under competitive conditions faces a labor supply curve which:
A. Slopes downward to the right B. Is perfectly elastic C. Is perfectly inelastic D. Is of unit elasticity