1 CR

hardfish

1. There are fundamentally two possible changes in an economy that will each cause inflation unless other  compensating changes also occur. These changes are either redutions in the supply of goods and services or increases in demand. In a prebanking economy the quantity of money available, and hence the level of demand, is equivalent to the quantity of gold available.

If the statements above are true, tehn it is also true that in a prebanking economy
B. If other factores in the economy are unchanged, increasing the quantity of gold available will lead to inflation
C. If there is a reduction in the quantity of gold available, then, other things being equal, inflation must result.

Key is B. 但 gold 不是 supply 吗？ 减少 supply 才会引起 inflation.

justag

hey, you didn't read the passage carefully and just took it for granted. The last sentence "In a prebanking economy the quantity of money available, [U]and hence the level of demand[/U], is equivalent to the quantity of gold available." clearly states that the quantity of gold  is equivalent to the level of demand.

[此贴子已经被作者于2003-1-4 2:37:54编辑过]

justag

hehe