Despite the monetary expansion of the 1992-2000 period, the inflation rate
a. rose due to adverse supply shocks.
b. rose due to large increases in aggregate demand.
c. fell despite adverse supply shocks.
d. fell due to favorable supply shocks.
d
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When the legal reserve requirement is changed,
a. the money multiplier is changed but the amount of excess reserves in the banking system is unchanged b. the money multiplier is unchanged but the amount of excess reserves in the banking system is changed c. the size of the money multiplier and the amount of excess reserves change in the opposite direction from the legal reserve requirement d. the size of the money multiplier and the amount of excess reserves change in the same direction as the legal reserve requirement e. neither the money multiplier nor the amount of excess reserves change.
A tax reduction shifts the consumption schedule downward
a. True b. False Indicate whether the statement is true or false