In a Demand-Pull Inflation, If the Fed Stops Expanding the Quantity

question 54

Multiple Choice

In a demand-pull inflation, if the Fed stops expanding the quantity of money

• A) a cost-push inflation spiral will occur.
• B) government expenditure will cause the demand-pull inflation to continue.
• C) a deflation will occur.
• D) the demand-pull inflation spiral ends.

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Definitions:

Thurgood Marshall

The first African-American justice on the U.S. Supreme Court, serving from 1967 to 1991, known for his legal work in dismantling racial segregation.

Dixiecrats

A political party in the United States, officially known as the States' Rights Democratic Party, that split from the Democratic Party in 1948, advocating for racial segregation and states' rights.

States' Rights Democrats

A faction within the Democratic Party that emerged in the mid-20th century, advocating for states' rights to legislate and govern without federal intervention, particularly on issues of racial segregation.

J.Strom Thurmond

A long-serving U.S. senator known for his strong support of racial segregation and opposition to civil rights legislation.