Countries like Germany, Russia, and Zimbabwe have experienced hyperinflation within the last century. It occurred mainly due to the
A. the lack of inflationary controls.
B. government mistakenly believed it could “inflate” way its debt.
C. government-run dictatorships.
D. government believed its policies would attract foreign investment.
Answer: B
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According to the Phillips curve model, when expectations of inflation increase, the same level of unemployment will be associated with a higher rate of inflation.
Answer the following statement true (T) or false (F)
Recall the Application about productivity in the nation of Latvia in the 1990s to answer the following question(s). According to this Application, workers in the European Community were more productive than workers in Latvia in the 1990s, yet despite this, the European Community chose to trade with Latvia. Engaging in trade with Latvia allowed ________ to become more productive.
A. workers in the European Community but not workers in Latvia B. workers in Latvia but not workers in the European Community C. neither workers in the European Community nor in Latvia D. workers in both the European Community and in Latvia
Which statement is true?
A. Few Americans blamed Herbert Hoover for the Great Depression. B. The U.S. experienced a brief depression in the early 1920s. C. Most American homes were not wired for electricity until the late 1940s. D. None of the choices are true.
What is the nominal value of money?
A) its actual face value B) what can be purchased with the money C) discounts taken by multiple purchases D) savings by shopping on specific days of the week