Hyperinflation is caused by
A) a constant increase in the money supply.
B) a high rate of growth in the money supply.
C) real GDP growing more rapidly than the money supply.
D) the money supply growing more slowly than GDP.
Answer: B
You might also like to view...
When there is an interval between when the fiscal policy changes and corresponding changes in aggregate spending, we have a(n)
A) aggregate time lag. B) action time lag. C) recognition time lag. D) effect time lag.
What types of unemployment will still exist when the economy is at the natural rate of unemployment?
A) frictional, structural, and cyclical unemployment B) frictional and cyclical unemployment only C) frictional and structural unemployment only D) structural and cyclical unemployment only
Some economists warn that "prices aren't everything" in considering agricultural policy. What other issues may slow development, even if prices are "right"?
What will be an ideal response?
List three primary ways in which profits above "normal" interest rate levels can be earned