According to the quantity theory of money, inflation is caused by
A) the money supply growing slower than real GDP.
B) GDP growing faster than the money supply.
C) GDP growing at the same rate as the money supply.
D) the money supply growing faster than real GDP.
Answer: D
Economics
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Everything else held constant, when households save less, wealth and the demand for bonds ________ and the bond demand curve shifts ________
A) increase; right B) increase; left C) decrease; right D) decrease; left
Economics
In the short run, the price level
a. will decrease if unit costs and markups both increase throughout the economy b. will remain stable if unit costs increase throughout the economy c. is unimportant in macroeconomics d. will increase if unit costs increase throughout the economy e. is determined by the Fed
Economics