A scatter diagram of money growth rates and inflation rates from 1982 to 2010 indicates
a. a clear direct relationship between money growth and inflation.
b. a clear indirect relationship between money growth and inflation.
c. no clear relationship between money growth rates and inflation.
d. that inflation is always and everywhere a monetary phenomenon.
c
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All economic activity in the underground economy represents the production of illegal goods and services
Indicate whether the statement is true or false
When a central bank buys foreign assets,
A) its holdings of foreign assets rise by the amount of the purchase, but the monetary base is unaffected. B) its holdings of foreign assets and the monetary base rise by the amount of the purchase. C) its holdings of foreign assets rise by the amount of the purchase, and the monetary base rises by the amount of the purchase times the money multiplier. D) the monetary base falls by the amount of the purchase.