In the United States during the 1960s, government spending dramatically increased to fight the Vietnam War, which resulted in:
a. demand-pull inflation.
b. cost-push inflation.
c. a disinflationary recession.
d. stagflation.
Question 2
The demand curve for money:
a. shows the amount of money balances that individuals and businesses wish to hold at various levels of private investment.
b. reflects the open market operations policy of the Federal Reserve.
c. shows the amount of money that households and businesses wish to hold at various rates of interest.
d. indicates the amount that consumers wish to borrow at a given interest rate.
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