The reason that the U.S. economy has experienced long-term inflation since World War II is
A) the high tax rates imposed by the federal government.
B) the large budget deficits run by the federal government.
C) the rate of growth of the money supply has been too fast relative to the rates of growth of velocity and output.
D) the long-run increases in the prices of oil and other basic commodities.
Correct Answer:
Verified
Q30: Why has the Fed made low inflation
Q31: Long-term inflation is principally
A)the result of chronic
Q32: A one-time cut in taxes
A)can result in
Q33: Inflation occurs whenever
A)there is a one-time increase
Q34: Which of the following statements is correct
Q36: Inflation places a tax on real money
Q37: According to new Keynesian economists, sustained expected
Q38: Sustained growth in the money supply doesn't
Q39: If the money supply is unchanged, expansionary
Q40: A supply shock that is not responded
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