A Major Reason Why It Is So Difficult to Eliminate

question 52

Multiple Choice

A major reason why it is so difficult to eliminate a constant inflation is that inflationary expectations

• A)make it impossible to stop the rightward shift of the AD curve.
• B)make it impossible to reduce aggregate expenditure.
• C)keep shifting the AS curve upward.
• D)keep shifting the AS curve downward.
• E)cannot be influenced by monetary policy.

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Definitions:

Four-Month Note

A promissory note or financial instrument that matures or comes due in four months.

Interest Calculation

The process of determining the interest charge on a loan or financial holding, based on the principal, rate, and period.

Time Expression

Phrases or terms used to indicate a specific period during which an event occurs or is scheduled to take place.

Maturity Dates

The specific dates on which a financial instrument such as a bond, loan, or fixed income instrument becomes due and is to be paid off.