Milton Friedman's Assertion That "Inflation Is a Monetary Phenomenon" Is

question 33

Multiple Choice

Milton Friedman's assertion that "inflation is a monetary phenomenon" is based on:

• A) the quantity theory of money.
• B) the assumption of constant nominal GDP growth.
• C) the assumption that the price level grows at the same rate as real GDP.
• D) the assumption that the central bank increases the money supply by a constant rate every year.

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Definitions:

Target Ratio

A specific numerical goal used in finance and business to measure and compare the efficiency, performance, or balance of different areas of operations or financial health.

Labor Costs

The total expense incurred by employers for the salaries, wages, benefits, and other forms of compensation paid to employees.

Electrical Components

Basic elements used in electrical systems, including resistors, capacitors, transistors, and circuits, essential for the functioning of electronic devices.

Bonus

A financial reward provided to employees in addition to their regular salary, often based on performance.