ch24finalquestions

ch24finalquestions - Chapter 25 Money and Inflation 25.1...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 25 Money and Inflation 25.1 Money and Inflation: Evidence 1) The condition of a continually rising price level is defined as A) stagflation. B) stagnation. C) disinflation. D) inflation. Answer: D Ques Status: Previous Edition 2) The economist who proposed that, ʺ Inflation is always and everywhere a monetary phenomenon ʺ was A) John Maynard Keynes. B) John R. Hicks. C) Milton Friedman. D) Franco Modigliani. Answer: C Ques Status: Previous Edition 3) Complete Milton Friedman ʹ s famous proposition: ʺ Inflation is always and everywhere a ________ phenomenon. ʺ A) monetary B) political C) policyD) budgetary Answer: A Ques Status: Previous Edition 4) At first cut, the simple solution to fighting inflation is A) reducing the growth rate of the money supply. B) limiting the number of terms that politicians can serve in elective office. C) returning the economy to barter by prohibiting the use of fiat money. D) to impose price controls on businesses that attempt to raise prices. Answer: A Ques Status: Previous Edition 5) ʺ How do we prevent the inflationary fire from igniting again and stop the roller coaster ride in the inflation rate of the last 40 years? ʺ Milton Friedman ʹ s famous proposition suggests the simple solution: A) reduce the number of terms that politicians are allowed to serve. B) reduce the growth rate of the money supply. C) reduce the marginal tax rate on low-income wage earners. D) increase the marginal tax rates on businesses that hike prices in excess of 5 percent per year. 6) Milton Friedman ʹ s proposition concerning the cause of inflation implies a simple solution to the inflation problem: 7) Milton Friedman ʹ s proposition that inflation is always and everywhere a monetary phenomenon holds only if A) government budget deficits do not rise continually. B) the unemployment rate does not rise continually. Ques Status: Revised
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
10) Countries with the highest inflation rates are likely to have A) the highest rates of money growth. B) small budget deficits relative to GDP. C) the lowest interest rates.D) nonaccomodating monetary policy. 12) Which of the following would provide the strongest evidence that rapid money growth is the driving force behind inflation? A) An endogenous increase in the money supply that preceded the onset of inflation. 15) Evidence for Latin American countries over the ten-year period 1989-1999 indicates that
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern