If During the Past Decade the Average Rate of Monetary

question 12

Multiple Choice

If during the past decade the average rate of monetary growth has been 5% and the average inflation rate has been 5%,everything else held constant,when the Federal Reserve announces that the new rate of monetary growth will be 10%,the adaptive expectation forecast of the inflation rate is

• A)5%.
• B)between 5 and 10%.
• C)10%.
• D)more than 10%.

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Definitions:

People's Temple

A cult led by Jim Jones, best known for the mass suicide in Jonestown, Guyana, in 1978, where over 900 members died.

Pascal's Wager

An argument in philosophy that posits individuals should live as if God exists, because the potential benefits outweigh the costs.

Atheism

The absence or lack of belief in the existence of deities or gods.

Agnosticism

The belief that the existence or non-existence of deities or other spiritual phenomena is unknown or unknowable.