The ________ cost of inflation is the result of a(n) ________ in ...

[tingc95]

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.

[morrie123456]

Answer to Question 1

D

Answer to Question 2

E

[tingc95]

Thank you

[morrie123456]

No problemo