For a very long time the country of Zeeland has had an inflation rate of 9%. Suddenly its inflation rate drops to 3%. The drop in the inflation rate
a. could be due to slower money supply growth. We would expect unemployment to be higher.
b. could be due to slower money supply growth. We would expect unemployment to be lower.
c. could be due to higher money supply growth. We would expect unemployment to be higher.
d. could be due to higher money supply growth. We would expect unemployment to be lower.
a
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If a firm accumulates unwanted inventories, then it
A) must hire more workers. B) will increase its production. C) has actual investment equal to its planned investment. D) will decrease its production. E) has actual investment that is less than its planned investment.
If a currency decreases in value as a result of government decree rather than market forces, the process is known as
a. devaluation. b. depreciation. c. deflation. d. degeneration.