In the Long-Run, Reduced Money Growth Results in ________ While

question 62

Multiple Choice

In the long-run, reduced money growth results in ________ while having no effect on the level of output.

• A) lower inflation and lower unemployment
• B) lower interest rates and lower inflation
• C) lower interest rates and less purchasing of durable goods
• D) higher interest rates and no change in inflation

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Definitions:

Deferred Tax Asset

An accounting term used to describe a situation where a company has paid more taxes to the government than it has shown as an expense in its financial statements, which can be used to reduce future tax liability.

Capital Cost Allowance

A tax deduction available in some jurisdictions for tangible and intangible assets, allowing businesses to write off the cost of assets over their useful life.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear fashion, resulting in a constant annual depreciation expense.

Tax Rate

The percentage at which an individual or corporation is taxed by the government, applicable to income, capital gain, or other taxable bases.