Which of the Following Statements Is True

question 52

Multiple Choice

Which of the following statements is true?

• A) Printing currency can be a profitable venture for a government.
• B) Printing currency, while necessary, is a losing venture for a government.
• C) Printing too much money usually leads to lower prices.
• D) In the modern economy the amount of money created has no effect on prices.

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Definitions:

Normative Statement

An opinion or judgment that expresses what ought to be, encompassing values or ideals, rather than factual assertions.

Positive Statement

An objective statement that can be tested or validated and is based on factual information.

Efficient Market

A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the average market return.

Cogito Ergo Sum

A philosophical statement by René Descartes, which translates to "I think, therefore I am," used to demonstrate the existence of the self and consciousness.