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GMAT CRITICAL REASONING OLD QUESTIONS REVIEW
29.There are fundamentally 2 possible changes in an economy that will each cause inflation unless other compensating changes also occur. These changes are either reductions 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 statement above are true, then it is also true that in a prebanking economy
(A)any inflation is the result of reductions in the supply of goods and services
(B)if other factors 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
(D)the quantity of goods and services purchasable by a given amount of gold is constant.
(E)whatever changes in demand occur, there will be compensating changes in the supply of goods and services.
A): B WHY NOT C? [F.35, Q.18]
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29.There are fundamentally 2 possible changes in an economy that will each cause inflation unless other compensating changes also occur. These changes are either reductions 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 statement above are true, then it is also true that in a prebanking economy
(A)any inflation is the result of reductions in the supply of goods and services
(B)if other factors 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
(D)the quantity of goods and services purchasable by a given amount of gold is constant.
(E)whatever changes in demand occur, there will be compensating changes in the supply of goods and services.
A): B WHY NOT C? [F.35, Q.18]
这是归纳题, 无需推理,只需根据原题得出结论即可,因为the quantity of gold与the level of demand是equivalent的,所以demand increases 的时候,会inflation,可见the quantity of gold increases 也会导致inflation。

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同意楼上
money available+ demand = gold quantity
gold increase ,money 不变 demand increase 前边说 demand increase 可以造成inflation
c 刚好相反

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就是布雷顿森林体系中的美圆和金的关系,美圆的供给量就是金的供给量。当金的供给量增加,导致货币供给量增加,对good and services的需求增加,需求大于供给,价格上涨。或者理解为money supply increases, currency depreciates, leads to inflation. 通货膨胀的成因。

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