World War I (1914–18) caused inflation because
(a) war production stressed an economy already operating
close to full employment.
(b) fiscal policy mandated it.
(c) the Federal Reserve System required it.
(d) inflation always occurs in times of war.
(a)
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Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q215g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />________ residents of Miniville live west of point B, and ________ live east of point A.
A. 150; 150
B. 100; 200
C. 200; 100
D. 200; 200
If the desired reserve ratio decreases, then
A) banks are able to make more loans. B) banks' desired reserves decrease and their excess reserves do not change. C) banks' desired reserves increase and their excess reserves decrease. D) banks are forced to buy fewer government securities. E) bank customers become more willing to make deposits in banks.
Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness?
A) inflation B) unemployed persons falsely report themselves to be actively looking for a job C) discouraged workers D) people employed in the underground economy
What does it mean when an economist says that a currency has become stronger?
(A) Services, unlike goods, can be exported freely. (B) There are very few things that the currency cannot buy in a foreign market. (C) The currency can be exchanged for more of a foreign currency. (D) The currency will buy less of foreign goods.