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Question 11 2 pts The Nobel prize winner Tom Sargent argued that "inflation is always and everywhere a fiscal phenomenon." What did he mean? Inflation is a tax on money holdings, and hence it can be viewed as a fiscal phenomenon. The Central Bank collects taxes and prints money, and hence inflation is a fiscal phenomenon. Governments with large fiscal imbalances, such as Germany after the first world war, resort to money creation to finance their spending, which generates inflation. Inflation is determined by the Quantity Theory. Question 12 2 pts The inflation rate is calculated as the difference in the price level. change of the price level. aggregate price level. percent change of the price level.

          Question 11
2 pts
The Nobel prize winner Tom Sargent argued that "inflation is always and everywhere a fiscal
phenomenon." What did he mean?
Inflation is a tax on money holdings, and hence it can be viewed as a fiscal phenomenon.
The Central Bank collects taxes and prints money, and hence inflation is a fiscal phenomenon.
Governments with large fiscal imbalances, such as Germany after the first world war, resort to money creation
to finance their spending, which generates inflation.
Inflation is determined by the Quantity Theory.
Question 12
2 pts
The inflation rate is calculated as the
difference in the price level.
change of the price level.
aggregate price level.
percent change of the price level.

Question 11
2 pts
The Nobel prize winner Tom Sargent argued that "inflation is always and everywhere a fiscal
phenomenon." What did he mean?
Inflation is a tax on money holdings, and hence it can be viewed as a fiscal phenomenon.
The Central Bank collects taxes and prints money, and hence inflation is a fiscal phenomenon.
Governments with large fiscal imbalances, such as Germany after the first world war, resort to money creation
to finance their spending, which generates inflation.
Inflation is determined by the Quantity Theory.
Question 12
2 pts
The inflation rate is calculated as the
difference in the price level.
change of the price level.
aggregate price level.
percent change of the price level.

Added by Larry D.

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