Exam 8: Inflation

Figure 8.1: Money Growth and Inflation in the United States by Decade -The proposition that changes in money have no real effect on the economy and affect only prices is referred to as:

A government that relies on seignorage to finance excess government expenditures is the foundation for the following quote:

In the quantity equation, the value P_tY_t is:

The costs associated with changing prices in times of inflation are called:

Money that has no intrinsic value except as money is called ________ money.

Briefly explain the cause of the Great Inflation in the 1970s.

According to the classical dichotomy, in the long run there is:

If the real interest rate is less than zero, it implies that the real interest rate deviates from the marginal product of capital in the short run.

If the inflation rate is larger than the nominal interest rate:

Practically, in the long run the real interest rate is equal to:

In the quantity theory of money, the:

In 2015, The Avengers: Age of Ultron generated about $191.2 million on its opening weekend. In 2007, Spider Man 3 generated $151.1 million on its opening weekend. If the CPI in 2000 was 100, the CPI in 2007 was 113.4, and the CPI in 2015 was 137.6, ________ is the larger single-day grossing movie, with about ________ million in revenues in 2000 dollars.

In the text, the country that experienced the highest inflation rate in 1990 was:

The revenue governments obtain from printing money is called:

With an inflation tax:

Below is the three-year bond real interest rate from 2000-2015. Explain why the real interest rate is positive for most of the 2000s and what explains it being negative in 2008-2009 and 2010-2015. What explains the near-zero real interest rate in 2015? Assuming this interest rate was used to make loans, who benefits from interest rates post-2010?Figure 8.2: Three-Year Bond Real Interest Rate: 2000-2015 (Source: Federal Reserve Economic Data, St. Louis Federal Reserve)

One problem with unexpected changes in inflation is that:

The quote "Inflation is always and everywhere a fiscal phenomenon" is attributed to:

In the United States, money is backed by:

The high rate of inflation in the United States in the late 1970s and early 1980s was due to high seigniorage.