What is normally the ultimate cause of hyperinflation?
What will be an ideal response?
The ultimate cause of hyperinflation is usually governments spending more than they collect in taxes, which results in government budget deficits. Governments that can't sell bonds to private investors will often sell them to their central banks. In paying for the bonds, the central bank increases the country's money supply. Excessive increases in the money supply result in hyperinflation.
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Holding other factors constant, if employers automatically enroll employees in retirement savings programs in order to overcome psychological barriers to saving, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.
A. increase; decrease B. increase; increase C. increase; not change D. decrease; increase
Sasha has a master's degree in writing, and currently works full-time as a 2nd grade classroom helper. She submits articles for the local paper on occasion, and gets paid only when the editor agrees to publish a submission. Sasha would love to be a full-time reporter. The best way to describe Sasha is to say she is ________; the Bureau of Labor Statistics would count Sasha as ________.
A. employed; employed B. underemployed; employed C. underemployed; underemployed D. discouraged; underemployed
If a firm is producing at an output level such that the MR is $550 and the MC is $780,
a. the firm incurs a total loss of $230 b. the firm should contract production because marginal profit is less than zero c. M? is +$230 d. the firm should expand its output level because its total revenue is rising by $550
If the Fed wishes to reduce the money supply, it can sell U.S. government securities to member banks
a. True b. False Indicate whether the statement is true or false