181.In June 2008 Zimbabwe had the world's highest
A)True
B)False
182.In the classical model of the price level, there is NO distinction between the short run and the long run.
A)True
B)False
183.The short-run
A)True
B)False
184.The classical model of the price level is more accurate during low inflation than high inflation.
A)True
B)False
185.An inflation tax is the effect on the public of a reduction in the value of money caused by inflation.
A)True
B)False
186.An inflation rate of 5% will increase the
A)True
B)False
187.It is impossible for the U.S. government to raise revenue by printing more money because the Federal Reserve, not the Treasury, issues most of the U.S. money supply.
A)True
B)False
188.People can avoid the inflation tax by reducing their real money balances.
A)True
B)False
189.A high inflation rate leads people to increase their money holdings, leading to more money printing and higher inflation.
A)True
B)False
190.Hyperinflation is often a result of a government trying to pay for its spending by using the inflation tax.
A)True
B)False
Step by step
Solved in 3 steps
