Which of the following examples would most likely cause hyperinflation?
a. A nation gradually repays a large debt over a ten-year period.
b. A nation increases its money supply to get out of a recession.
c. A nation is given a reprieve on a large debt in return for lowering tariffs.
d. A nation rapidly prints money to pay off a very large debt to another nation.
d. A nation rapidly prints money to pay off a very large debt to another nation.
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In which of the following situations does investment spending increase?
a. A rise in interest rates b. A decrease in interest rates c. Government proposes to increase taxes on capital d. A recession
This month, the local widget factory produced 100 widgets. The total variable cost of production was $500 and the average total cost of production was $8
a. What is the total cost? b. What is the total fixed cost? c. What is the average fixed cost? d. What is the average variable cost?
Historical data on prices and quantities sold do not provide the basis for drawing an accurate demand curve because
A. reporters who gather these data are often wrong. B. factors other than price may change over time. C. they do not include measures of price close to the quantity axis. D. they sometimes tend to be clustered around one point.
An unexpected fall in car sales should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down