In periods of high inflation,
a. people want to hold on to as much money as possible.
b. the purchasing power of money is decreasing.
c. nobody wants to work and earn income.
d. low nominal interest rates are likely to result.
e. nobody wants to buy goods and services.
Question 2
Which of the following favors government policies to stimulate the economy by creating incentives for individuals and businesses to increase their productive efforts?
a. supply-side economics.
b. Keynesian economics.
c. monetarist economics.
d. Marxian economics.
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