High inflation can spiral out of control when
A) expected inflation increases nominal interest rates, causing the Fed to buy bonds, increasing the money supply and further increasing inflation.
B) expected inflation decreases nominal interest rates, causing the Fed to buy bonds, increasing the money supply and further increasing inflation.
C) expected inflation increases nominal interest rates, causing the Fed to sell bonds, increasing the money supply and further increasing inflation.
D) expected inflation decreases nominal interest rates, causing the Fed to sell bonds, increasing the money supply and further increasing inflation.
A
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The total revenue from the sale of a good or service is calculated by multiplying the price paid by the number of units sold
Indicate whether the statement is true or false
Assume declining profits in the market for Internet service force several firms in the area to drop out of the market. All else constant, this would cause the:
A) equilibrium price and quantity to decrease. B) equilibrium price and quantity to increase. C) equilibrium price to increase and equilibrium quantity to decrease. D) equilibrium price to decrease and equilibrium quantity to increase.