In the long run, sustained inflation is due to

A. a one-time increase in money growth.
B. a continuous increase in aggregate demand.
C. a continuous increase in the money growth rate.
D. the rising price of oil.

Ans: C. a continuous increase in the money growth rate.

Economics

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A fractional reserve system means a commercial bank can lend out most of its deposits

a. true b. false

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If a firm's output more than doubles when all inputs are doubled, production is said to occur under conditions of

A) increasing returns to scale. B) imperfect competition. C) intra-industry equilibrium. D) constant returns to scale E) decreasing returns to scale.

Economics