With regard to inflation,the "acceleration hypothesis" states that
A) when the central bank holds an inflationary gap constant,inflation will tend to accelerate.
B) if an economy is growing,inflation will grow at an ever-increasing rate.
C) capital investment is the primary cause of inflation.
D) monetary validation causes inflation.
E) if a recessionary gap is not closed,unemployment will tend to accelerate.
Correct Answer:
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