Inflation occurs when: （ ）
A: the stock of goods and services increases and the quantity of money in circulation decreases.
B: the money supply decreases and the output increases.
C: output increases faster than the money supply.
D: the quantity of money in circulation rises faster than the stock of goods and services.
A: the stock of goods and services increases and the quantity of money in circulation decreases.
B: the money supply decreases and the output increases.
C: output increases faster than the money supply.
D: the quantity of money in circulation rises faster than the stock of goods and services.
举一反三
- When the interest rate falls in the money market, the quantity of money demanded ________ and the quantity of money supplied ________. A: increases; decreases B: decreases; increases C: stays the same; decreases D: increases; stays the same
- When conducting an open-market sale, the Fed () A: buys government bonds, and in so doing increases the money supply. B: buys government bonds, and in so doing decreases the money supply. C: sells government bonds, and in so doing increases the money supply. D: sells government bonds, and in so doing decreases the money supply.
- Because the productivity of labor decreases as the quantity of labor employed increases, A: the quantity of labor a firm demands increases as the real wage rate decreases. B: the quantity of labor a firm demands increases as the money wage rate decreases. C: the labor demand curve shifts right as the real wage rate decreases. D: the aggregate production function shifts upward as the real wage rate decreases.
- The Fed increases the money supply by
- When the Fed makes an open-market sale， it：（ ） A: increases the money multiplier (m). B: increases the currency-deposit ratio (cr). C: decreases the monetary base (B). D: increases the monetary base (B).