With Regard to Inflation,the "Acceleration Hypothesis" States That

question 42

Multiple Choice

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.

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