According to the Monetarist Theory,inflation Occurs When

question 10

Multiple Choice

 According to the monetarist theory,inflation occurs when 

• A) government holds down interest rates. 
• B) there is too little money, and interest rates are low. 
• C) demand exceeds supply. 
• D) the budget deficit exceeds the gross national product (GNP). 
• E) the government prints too much money.

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Definitions:

Physiological Needs

Basic physical requirements including air, water, food, shelter, and sleep, necessary for survival.

Instinct Theory

A psychological perspective suggesting that certain human behaviors are innate and driven by evolutionary pressures.

Drive-Reduction Theory

A theory in psychology that proposes that psychological needs create an aroused state that drives an organism to reduce that need by engaging in some behavior.

Biological Factors

Refer to the genetic, neurological, and physiological conditions that affect human behavior and mental processes.