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15 Aug 2004, 15:01
Kudos
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N
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Attached. I could not understand it..please provide your answers with explanations and basically what the argument means.
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15 Aug 2004, 17:09
Kudos
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B is Exactly Right.
Two changes cause inflation (in the absence of compensatory changes).
One of the two is the level of demand, dicated by the supply of gold in a pre-banking economy.
So if the gold level increases (and nothing else changes) this will guarantee inflation.
Two changes cause inflation (in the absence of compensatory changes).
One of the two is the level of demand, dicated by the supply of gold in a pre-banking economy.
So if the gold level increases (and nothing else changes) this will guarantee inflation.
