59. Why does money growth not always cause inflation? (A) There is a lag between monetary growth and observed inflation. (B) The extra money is 'parked' in assets, instead of being spent and circulated wide (C) The extra money is used to purchase imports, so that foreign central banks incre their cash reserves. (D) All of the above.

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ISBN:9781337000529
Author:William A. McEachern
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Chapter7: Unemployment And Inflation
Section: Chapter Questions
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59. Why does money growth not always cause inflation?
(A) There is a lag between monetary growth and observed inflation.
(B) The extra money is 'parked' in assets, instead of being spent and circulated widely.
(C) The extra money is used to purchase imports, so that foreign central banks increase
their cash reserves.
(D) All of the above.
Transcribed Image Text:59. Why does money growth not always cause inflation? (A) There is a lag between monetary growth and observed inflation. (B) The extra money is 'parked' in assets, instead of being spent and circulated widely. (C) The extra money is used to purchase imports, so that foreign central banks increase their cash reserves. (D) All of the above.
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