What Did Milton Friedman Mean by Saying That "Inflation Is

question 58

Multiple Choice

What did Milton Friedman mean by saying that "inflation is always and everywhere a monetary phenomenon"?

• A) Inflation only affects those who hold money,as savings or in the form of investments.
• B) Inflation is due to cash transactions,not transactions based on credit.
• C) In any economy that uses money as a medium of exchange,there will always be some inflation.
• D) Inflation is about rising prices,not about rising productivity.
• E) Inflation is caused by an increase in the money supply relative to the quantity of goods and services.

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Definitions:

Atomic Sentences

The simplest type of sentence that cannot be broken down into smaller components while still expressing a complete proposition.

Truth Table

A mathematical table used in logic to determine whether a compound statement is true or false, depending on the truth values of its components.

Modus Tollens (MT)

A form of logical argument that concludes the inverse of an antecedent from the negation of its consequent in a conditional statement.

Modus Ponens (MP)

A logical reasoning pattern that asserts if a given premise is true, then the consequent logically follows; structured as "If P, then Q. P, therefore Q."