During World War I (1914–18), national debt soared, leading to
(a) money creation and inflation.
(b) money creation and deflation.
(c) money destruction and inflation.
(d) money destruction and deflation.
(a)
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Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, the government's revenue from the tax is represented by the area
A) (PaPc × Qa) if the supply curve is S0 and (PbPc × Qb) if the supply curve is S1. B) (PbPe × Qb) under either supply curve. C) (PaPd × Qa) if the supply curve is S0 and (PbPe × Qb) if the supply curve is S1. D) (PaPe × Qa) under either supply curve.
Two countries engaged in trade in products with scale economies, produced under conditions of monopolistic competition, are likely to be engaged in
A) intra-industry trade. B) price competition. C) inter-industry trade. D) Heckscher-Ohlinean trade. E) immiserizing trade.
Economics is the study of
A. how people spend their income. B. why people want certain goods and services rather than other goods and services. C. how people allocate their limited resources to satisfy their unlimited wants. D. how to get rich.
What would happen to the planned investment function if business taxes were increased?
A) It would shift to the right. B) It would shift to the left. C) It would shift upward. D) There would be no change.