The ________ cost of inflation is the result of a(n) ________ in velocity and is so-named because of ________.
A) tax; decrease; the government collecting more tax revenue on all goods and services including basic items like shoes
B) confusion; increase; the shoe leather that is wasted by people running around trying to spend money quickly
C) shoe leather; increase; the higher prices for all goods and services including basic items like shoes
D) shoe leather; increase; the shoe leather that is wasted by people running around trying to spend money quickly
E) shoe leather; decrease; the shoe leather that is wasted in people running around trying to spend money quickly
Question 2
Comparing the effect on the monetary base between an open market purchase of government securities from a bank and the same open market operation conducted with the general public, the monetary base
A) decreases by the same amount if the general public sells the securities or if a bank sells the securities.
B) does not change if it is the general public that sells the securities.
C) increases by a larger amount if a bank sells the securities than if the general public sells the securities.
D) increases by a larger amount if the general public sells the securities than if a bank sells the securities.
E) increases by the same amount if the general public sells the securities or if a bank sells the securities.
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