The main sources of cost-push inflation are increases in
A) the money wage rate and the price of raw materials.
B) the real wage rate and the price of raw materials.
C) the money wage rate and aggregate demand.
D) the quantity of money and the real wage rate.
E) government expenditure and the quantity of money.
A
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Refer to the scenario above. Tom will receive ________ if he raises his left hand and Sam raises his right hand
A) 2 candy bars B) 3 candy bars C) 0 candy bars D) 1 candy bar
Current Federal Reserve policy focuses on interest rates, rather than on monetary aggregates, because ________
A) monetary aggregates do not provide clear or consistent signals to guide policymakers B) open market operations affect interest rates more directly than they affect monetary aggregates C) according to the Fisher effect, the interest rate is a key determinant of the inflation rate D) all of the above E) none of the above