5. Demand-pull inflation means that a) High inflation can be due to excessive spending that is pulling up prices. b) High inflation is caused by low interest rates c) High inflation is caused by the increased cost of production d) None of the above 6. Which of the following statements is true? Central banks use monetary policy to: a) Stabilize economic growth. b) Stabilize inflation. c) Control interest rates. d) All of the above. 7. Central banks earn their income by a) Providing services to financial institutions b) Opening ordinary citizens' account c) Giving loans to the businesses d) None of the above 8. The narrow form of money, known as M1 includes a) currency + checking deposits b) Savings and short term deposits c) Long-term deposits in banks d) All of the above