The Proposition That Inflation Is the Result of a High

question 80

Multiple Choice

The proposition that inflation is the result of a high rate of money growth is

• A)not supported by evidence from the German hyperinflation.
• B)held only by sociologists and is no longer believed by economists.
• C)supported by evidence from inflationary episodes throughout the world.
• D)largely a political fabrication designed to make the Fed a scapegoat for poor fiscal policy.

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Definitions:

Audit

A systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view.

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.