In the original Austin Powers, Dr. Evil is cryogenically frozen for thirty years (from the late 1960s to the late 1990s). Upon his return he hatches a plan to extort one million dollars from various world governments. His henchmen are unimpressed.
What type(s) of inflation have made Dr. Evil's proposed blackmail amount seem too small?
A) cost-push inflation B) both cost-push and demand-pull inflation
C) both cost-price and price-pull inflation D) demand-pull inflation
Question 2
The quantity theory of money implies that:
A) inflation is equal to the gap between the growth rate of money supply and the current real interest rates.
B) inflation is equal to the gap between the growth rate of money supply and the growth rate of nominal GDP.
C) inflation is equal to the gap between the growth rate of money supply and the current nominal interest rates.
D) inflation is equal to the gap between the growth rate of money supply and the growth rate of real GDP.
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