According to the Quantity Theory of Money, Persistent Inflation Can

question 13

Multiple Choice

According to the quantity theory of money, persistent inflation can only be caused by:

• A)a low rate of unemployment.
• B)money supply growth that exceeds real GDP growth.
• C)a high rate of unemployment.
• D)a continually-growing government deficit.

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Definitions:

Repression

A defense mechanism where distressing thoughts, memories, or feelings are unconsciously blocked from conscious awareness.

Reaction Formation

A psychological defense mechanism where an individual behaves in a manner opposite to their actual feelings.

Sublimation

A defense mechanism in psychology where socially unacceptable impulses or idealizations are unconsciously transformed into socially acceptable actions or behavior.

Denial

A psychological defense mechanism involving refusal to accept reality or facts, therefore avoiding dealing with painful feelings.