Which of the Following Statements Is True? Economists Generally Agree

question 22

Multiple Choice

Which of the following statements is true? Economists generally agree that

• A) the rate of inflation in the long run is determined primarily by growth in government spending.
• B) factors other than money growth may influence the inflation rate from one year to the next, but they are not likely to cause sustained inflation.
• C) the primary cause of inflation is increases in the money supply growth that exceed growth increases in aggregate demand.
• D) the major causes of inflation are declining productivity coupled with excessive spending.

---

Definitions:

Public Office

Positions of authority or responsibility in government that are held by individuals who have been elected or appointed to serve the public in some capacity.

Entrepreneurial Method

An approach to entrepreneurship that focuses on iterative learning and adaptation in the process of starting and growing a business.

Consistent Practice

The regular and repeated exercise of an activity or skill to improve proficiency and achieve mastery over time.

Family Enterprise

A business that is owned and managed by multiple family members, typically for more than one generation.