During the German hyperinflation of the 1920s, the large increases in the money supply were generated by the German government
A) significantly raising the required reserve ratio to reduce business loans.
B) significantly lowering the required reserve ratio to enable German businesses to obtain loans.
C) selling large quantities of government bonds to the central bank, the Reichsbank.
D) printing large quantities of German marks.
C
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Explain the intuition behind why the aggregate demand curve is downward sloping. Why does an increase in the money supply shift the aggregate demand curve to the right?
What will be an ideal response?
Judgment by performance means that the competitiveness of a market is determined by:
A. the structure of the industry. B. technological considerations. C. the number of firms in the market. D. the actual behavior of firms in the market.
The real exchange rate generally has ________ relationship with aggregate expenditure.
A. a negative B. no C. a positive D. a constant
The immigration of skilled scientists and engineers from other nations raises the wages of scientists and engineers.
Answer the following statement true (T) or false (F)