When a country using gold as money
experiences inflation, the value of gold declines. Since
gold is cheaper, people use gold for things that
previously they would not have used it for. Hence, gold
is withdrawn from circulation. This interaction is an
both amplifying and dampening
Which of the following is an example of
When people riot more, police respond
with greater violence; when police use more violence,
people riot more.
The more land erodes, the less
vegetation it has; the less vegetation land has, the
more easily it erodes.
The fatter John gets, the more he
eats; the more John eats, the fatter he gets.
As spending and income rise, the
amount of taxes that the government collects rises;
increases in taxes cut spending and income.