The purchasing power of the Zimbabwean dollar:
A. rose because when inflation rises, purchasing power rises.
B. fell because there was more money chasing the same goods.
C. rose because the money supply rose but real output did not.
D. fell because people would not accept the newly-printed money.
Ans: B. fell because there was more money chasing the same goods.
You might also like to view...
In most rich countries, adult citizens typically have a
A. primary education. B. secondary education. C. higher education. D. graduate-level education.
Refer to Figure 8.2 above. The total fixed costs for The Barber Shop are $3,000. If The Barber Shop produces 300 hair cuts, the average fixed costs are A) $.20. B) $5. C) $10. D) $100.
Based solely on the graph showing the effective federal funds rate, if you were a borrower with the goal of locking in a thirty-year mortgage with a very low interest rate, which of the following years would have been the best one to take out your loan?
a. 1970
b. 1975
c. 1981
d. 2009
Lower inflation is usually accompanied by
a. lower nominal interest rates b. lower real interest rates c. higher nominal interest rates d. higher real interest rates e. zero real interest rates