When the Money Supply Is Expanding and Prices Rise Rapidly

question 30

Multiple Choice

When the money supply is expanding and prices rise rapidly, economic growth

• A) is slowed by the resulting unpredictability of the future level of prices.
• B) is enhanced as economic activity grows more rapidly.
• C) is enhanced because profits are higher so that capital investment is greater.
• D) is enhanced because existing debt is reduced in value, so people are willing to buy more goods.

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Definitions:

Routine Collective Action

The repetitive and predictable actions performed by groups or collectives as part of their normal functioning.

Revolutionary Action

A significant and often sudden action or movement aimed at causing fundamental changes in societal structures.

Nonroutine Collective Action

Refers to actions taken by a group of individuals or organizations that are not part of their normal activities to achieve a common goal or address a specific issue.

Breakdown Theory

A theory in social sciences that explains social movements as a result of the breakdown of social norms and structures.