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baller1216
baller1216
23.11.2019 • 
Business

Inflation in the developing country of terbia has been rising over the last few years and is currently at a very high level. two stock market analysts, stanley durro and michelle thompson, are discussing the possible causes of inflation. michelle thinks that the real reason why prices are rising is because terbia's economy is expanding. stanley disagrees. he argues that the inflation is not demand driven; on the contrary, too much money in the economy is increasing the price level.
which of the following, if true, would weaken stanley's claim that the inflation is driven by an excess supply of money?
a. firms in terbia have reported an increase in the level of unplanned inventories.
b. investment in long-term time deposits has declined in the last two years.
c. the central bank has been increasing the target interest rate at regular intervals and it is now at its highest level in eight years.
d. the level of inflation recorded in terbia is lower than most of its neighboring countries.
e. employment in the agricultural sector has fallen even as agricultural output has increased.

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