Tradable allowances are like taxes in that they both:

Governments promote long-run inflation when they depend on ________ to finance their expenditures

A) issuing bonds B) taxation C) raising the national debt D) money creation E) selling off assets

In the medium run, an increase in the rate of growth of nominal money will cause

A) lower nominal and lower real interest rates. B) lower nominal interest rates and no change in the real interest rate. C) an increase in inflation and an increase in output growth. D) a proportionate increase in inflation.