Inflationary Pressures Will Begin to Build If the Money Supply

question 70

True/False

Inflationary pressures will begin to build if the money supply grows too rapidly.

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Definitions:

Net Exports

The value of a country's total exports minus the value of its total imports. It is a component of GDP that indicates a country's trade balance.

Money Supply

The sum of all financial assets in an economy at a specific time.

Interest Rates

The cost of borrowing money or the return for investing, usually expressed as a percentage per annum.

Aggregate Demand

Represents the total demand for goods and services within a particular economy at a given overall price level and in a given time period.