Some Economists Believe That There Are Positives from a Little

question 16

Multiple Choice

Some economists believe that there are positives from a little inflation and that it may "grease the wheels"

• A)in the stock market.
• B)in the foreign exchange market.
• C)in the bond market.
• D)in the labor market.

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Definitions:

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one may lead to an increase in demand for the other.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at different prices.

Substitute Good

A product or service that can be used in place of another to satisfy consumer needs or desires.

Demand Curve

A graph illustrating the quantity of a good that consumers are willing and able to purchase at various prices, typically downward sloping.