Which of the following about inflation is true?
a. High rates of inflation are usually associated with wide year-to-year changes in inflation.
b. High rates of inflation are usually associated only with very large countries such as the United States.
c. High rates of inflation are usually associated only with smaller countries such as Costa Rica.
d. High rates of inflation will generally improve the economic efficiency of an economy.
A
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When the opportunity cost of holding money increases, then
A) the quantity of money supplied increases. B) people want to hold more money. C) the real interest rate falls. D) the nominal interest rate falls. E) people want to hold less money.
One problem with using a command-and-control approach to pollution reduction is that the monitoring costs may be too high
Indicate whether the statement is true or false