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Economics
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12 Dec 2019

More bonds the Fed sells, the _______ the money supply grows, and the ______ the inflation rate will be.

A) slower; lower
B) slower; higher
C) faster; lower
D) faster; higher

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Related questions

The quantity theory of money predicts that, in the long run, inflation results from the:
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(ii) money supply growing at a slower rate than real GDP.
(iii) velocity of money growing at a slower rate than real GDP.
(iv) rate of growth of government spending.
To increase your standard of living, your wages must:
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Suppose there are two countries, Freedonia and Sylvania, which have identical amounts of resources, identical technologies, and identical populations. Both produce two types of goods, consumer goods and capital goods, and they both always operate on their production possibilities frontiers. The only difference is that this year Freedonia chooses to produce relatively more consumer goods than Sylvania. As a result,

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c. Sylvania will have a higher living standard this year but will grow slower than Freedonia.

d. Sylvania will have a higher living standard this year and will grow faster than Freedonia.

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