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:

Mean

A measure of central tendency, calculated by adding all the values in a dataset and dividing by the number of values.

Continuous Probability Distributions

Mathematical functions that assign probabilities to every possible value of a continuous random variable.

Location Parameter

A parameter in probability distributions that determines the location or central tendency of the distribution.

Scale Parameter

A parameter in statistical or mathematical models that measures the scale or level of concentration of a distribution or data set.