Which of the Following Statements Is True? Economists Generally Agree

question 22

Multiple Choice

Which of the following statements is true? Economists generally agree that

• A) the rate of inflation in the long run is determined primarily by growth in government spending.
• B) factors other than money growth may influence the inflation rate from one year to the next, but they are not likely to cause sustained inflation.
• C) the primary cause of inflation is increases in the money supply growth that exceed growth increases in aggregate demand.
• D) the major causes of inflation are declining productivity coupled with excessive spending.

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