Hyperinflation is
A) inflation caused by negative growth in the quantity of money.
B) inflation at a rate that exceeds 5 percent a month.
C) only theoretical and has never occurred in the real world.
D) inflation caused by excessive growth in the demand for money.
E) inflation at a rate that exceeds 50 percent a month.
E
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As economic activity progresses through successive rounds of the multiplier, the additions to national income become larger and larger
Indicate whether the statement is true or false
During the financial crisis of 2008-2010, the Fed
a. increased its purchases of securities and other financial assets and extended more loans, which expanded the monetary base. b. increased its purchases of securities and other financial assets and extended more loans, which reduced the monetary base. c. reduced its purchases of securities and other financial assets and extended fewer loans, which expanded the monetary base. d. reduced its purchases of securities and other financial assets and extended fewer loans, which caused the monetary base to decline.
The present discounted value of a future payment will increase when the
A. Risk of nonpayment increases. B. Future payment is moved further into the future. C. Opportunity cost of money increases. D. Interest rate decreases.
Which of the following examples, ceteris paribus, would lead to a change in investment that would shift that nation’s aggregate demand curve?
a. Argentina’s government builds new highways. b. Portugal experiences a bout of high price levels. c. Spain’s government raises taxes on businesses. d. Mexico experiences high consumer debt levels.