In high inflation countries, inflation rates can exceed the rate of growth of money because:
A. money loses value quickly with inflation.
B. high inflation increases the velocity of money.
C. high rates of inflation increase the opportunity cost of holding money.
D. all of the answers given are correct.
Answer: D
Economics
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According to Keynes' fixed money wage theory, when the price level is higher than expected the real wage is ____ than expected and unemployment is ______ than expected
a. lower; lower b. higher, higher c. lower; higher d. higher; lower
Economics
The market system is also called the price system because
A) rising prices are the signal to producers to offer more of a particular good. B) people pay money in markets. C) everything has a price tag. D) inflation is a significant problem.
Economics