In a Demand- Pull Inflation, If the Fed Stops Expanding

question 172

Multiple Choice

In a demand- pull inflation, if the Fed stops expanding the quantity of money,

• A) government expenditure will cause the demand- pull inflation to continue.
• B) the demand- pull inflation ends.
• C) a cost- push inflation will occur.
• D) a deflation will occur.

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Definitions:

Poly-

A prefix meaning "many" or "multiple," used to describe objects or phenomena that have numerous aspects or parts.

Below

A term used to indicate a lower level or position, or being beneath something else.

Sub-

A prefix meaning below, under, or beneath, often used to form nouns, adjectives, or verbs.

Toward

In the direction of; closer to a particular point or in consideration of.