Hyperinflation
A) occurs in the United States during each business cycle.
B) has never occurred in the United States.
C) is a period of time when inflation exceeds 20 percent per year.
D) happens in all countries at some time during their business cycle.
E) occurs only in theory, never in reality.
B
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Both Keynesians and supply-siders believe that tax cuts
a. will increase income by increasing aggregate supply. b. will increase income by increasing aggregate demand. c. will increase income but for different reasons. d. will increase income in the Keynesian model but decrease income in the Supply-side model.
During the 1870s and 1880s, which technological innovation was NOT introduced?
a. the roller mill to process oatmeal b. steel-bottomed stills c. long-distance pipelines d. the typewriter e. All of the above were introduced.
During the last two centuries, after adjustment for inflation,
a. corporate bonds have yielded a real return of approximately 7 percent annually, compared to a real return of about 3 percent for corporate stocks. b. corporate stocks have yielded a real return of approximately 7 percent annually, compared to a real return of about 3 percent for bonds. c. both corporate stocks and bonds have yielded a real rate of return of about 3 percent. d. both corporate stocks and bonds have yielded a real rate of return of about 7 percent.
Which one of the following is an area of agreement among modern macroeconomists with regard to the use of fiscal policy?
a. Congressional action is necessary if automatic stabilizers are going to be an effective stabilization tool. b. It is difficult to time changes in discretionary fiscal policy in a manner that will promote stability. c. Fiscal policy is more potent than the early Keynesian view implied. d. Budget deficits are a highly effective tool with which to combat a severe recession.