How does excess money actually create inflation? Select one: a. By raising the amount of imports when the excess money is used to buy additional goods. b. By raising the cost of factors of production when producers attempt to increase output to meet the additional demand. c. By raising the rate of interest required to hold a greater money stock. d. By raising the time it takes to produce output. e. By raising the exchange rate.

How does excess money actually create inflation? Select one: a. By raising the amount of imports when the excess money is used to buy additional goods. b. By raising the cost of factors of production when producers attempt to increase output to meet the additional demand. c. By raising the rate of interest required to hold a greater money stock. d. By raising the time it takes to produce output. e. By raising the exchange rate.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 14P

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