Increases in the Quantity of Money Can Start a ________

question 246

Multiple Choice

Increases in the quantity of money can start a ________ inflation and an increase in government expenditure can start a ________ inflation.

• A)demand-pull; demand-pull
• B)demand-pull; cost-push
• C)cost-push; cost-push
• D)cost-push; demand-pull
• E)None of the above are correct because increases in the quantity of money are necessary to continue an inflation but cannot start an inflation.

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Definitions:

Nondirectional Correlation

A type of correlation where the direction (positive or negative) of the relationship between variables is not specified.

Statistically Significant

A determination that an observed effect in a study is unlikely to have occurred due to chance alone.

Causality

The relationship between cause and effect, where one event (the cause) is understood to directly result in the occurrence of another event (the effect).

Probability Level

The likelihood or chance that a particular event will occur, often measured by a numerical value ranging from 0 (impossibility) to 1 (certainty).