According to the Quantity Theory of Money, Inflation Is Caused

question 186

Multiple Choice

According to the quantity theory of money, inflation is caused by

• A)the money supply growing slower than real GDP.
• B)GDP growing faster than the money supply.
• C)GDP growing at the same rate as the money supply.
• D)the money supply growing faster than real GDP.
• E)Government deficit spending.

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Definitions:

Personal Income Tax

A tax that individuals pay on their earnings to the government, usually structured in progressive brackets.

Internet Tax Freedom Act

A U.S. law enacted in 1998 that bars federal, state, and local governments from taxing Internet access and imposing discriminatory internet-only taxes such as bit taxes, bandwidth taxes, and email taxes.

Tax Collections

The process of gathering taxes by government authorities from individuals and businesses.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxation by governmental authorities.