Which of the Following Statements Are Correct? the Expectational Effect

question 112

Multiple Choice

Which of the following statements are correct? The expectational effect of inflation
1) is nullified as soon as the government promises zero inflation;
2) often plays a role in accelerating inflation;
3) is not directly a monetary cause of inflation.

• A)1 only
• B)2 only
• C)3 only
• D)1 and 2
• E)2 and 3

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Definitions:

Continental Margins

The zones of transition between the landmasses of continents and the deep-sea floors, including the continental shelf, slope, and rise.

Island Arcs

Curved chains of volcanic islands that form along the convergent boundaries of tectonic plates, typically over a subducting plate.

Transform Fault

A type of fault wherein two tectonic plates slide past each other horizontally, often associated with significant seismic activity.

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, that stretches across the ocean floor, marking sites where new oceanic crust is created by volcanic activity.