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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Definitions:

Meyer v. Nebraska

A 1923 Supreme Court case that ruled a Nebraska law restricting foreign-language education violated the Fourteenth Amendment, emphasizing individual rights.

Fourteenth Amendment

Ratified in 1868, this U.S. Constitutional amendment granted citizenship to all persons born or naturalized in the United States, including former slaves, and provided all citizens with “equal protection under the laws.”

Supreme Court

The highest federal court in the United States, which has the ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.

Fundamentalists

Individuals or groups who advocate for a strict and literal interpretation of religious texts and doctrines, often in opposition to modernist or secular views.