Determine whether the following items increase or decrease inflation as they affect aggregate demand. 1. Easier process for tax refunds * a. Increase inflation b. Decrease inflation 2. Higher return on deposits * a. Increase inflation b. Decrease inflation 3. Increase in money printed and in circulation * a. Increase inflation b. Decrease inflation
Determine whether the following items increase or decrease inflation as they affect aggregate demand. 1. Easier process for tax refunds * a. Increase inflation b. Decrease inflation 2. Higher return on deposits * a. Increase inflation b. Decrease inflation 3. Increase in money printed and in circulation * a. Increase inflation b. Decrease inflation
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: The Short-run Trade-off Between Inflation And Unemployment
Section: Chapter Questions
Problem 5CQQ
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Determine whether the following items increase or decrease inflation as they affect aggregate
1. Easier process for tax refunds *
a. Increase inflation
b. Decrease inflation
2. Higher return on deposits *
a. Increase inflation
b. Decrease inflation
3. Increase in money printed and in circulation *
a. Increase inflation
b. Decrease inflation
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