Demand pull inflation can be started by A) a decrease in net ...

[mikaylakyoung]

Demand pull inflation can be started by
 
  A) a decrease in net exports.
  B) an increase in government expenditure.
  C) a decrease in the money price of resources.
  D) an increase in the price of oil.
  E) a decrease in the quantity of money.

Question 2

Suppose the U.S. price level is 150, the German price level is 450, and the Swiss price level is 600.
 
  If exchange rates are 3 euros/dollar and 4 francs/dollar, then purchasing power parity ________ between Germany and the United States and ________ between Switzerland and the United States.
  A) does not hold; holds B) holds; does not hold
  C) does not hold; does not hold D) holds; holds

[Jadwiga9]

Answer to Question 1

B

Answer to Question 2

D