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

question 112

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:

Fair Labor Standards Act

United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

Minimum Wages

The lowest legal hourly rate of pay that employers can compensate workers, as mandated by federal or state law.

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A type of pension plan where an employer promises a specified pension payment upon retirement, based on an employee's earnings history, tenure of service, and age.

Civil Rights Act

A landmark piece of federal legislation in the United States that outlaws discrimination based on race, color, religion, sex, or national origin.