Which theory says that inflation occurs when the demand for goods exceeds the existing supply?
(A) Quantity theory
(B) Demand-pull theory
(C) Cost-push theory
(D) Supply-and-demand theory
Ans: (B) Demand-pull theory
Economics
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Movement of money to another country for fear of a sudden loss of value is
a. conditionality b. default c. debt service d. capital flight e. none of the above
Economics
What famous economist said that the market economy seemed to be controlled by an invisible hand?
a. Alfred Marshall. b. Adam Smith. c. Karl Marx. d. Robert L. Heilbroner.
Economics