One reason Zimbabwe suffered from hyperinflation is that the government had decided to pay for all of its expenses by
A) selling Treasury bonds to foreign governments.
B) selling its government-run oil company to a private company, which then defaulted on its payment.
C) raising interest rates to attract foreign direct investment, then nationalizing the foreign-owned facilities.
D) printing more and more money.
Answer: D) printing more and more money.
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A minimum wage set above the equilibrium wage rate is a price
A) ceiling that results in a shortage of low-skilled labor. B) ceiling that results in a surplus of low-skilled labor. C) floor that results in a shortage of low-skilled labor. D) floor that results in a surplus of low-skilled labor.
In the short run, ________
A) cost push shocks can cause firms to raise prices B) workers pushing for higher wages may lead to increases in inflation C) the aggregate supply curve may shift to the left with increases in expected inflation D) all of the above E) none of the above
Which of the following reflects an investment in human capital?
a. a new labor-saving technology b. a new heath clinic c. a new factory employing more workers d. an increase in consumption per capita e. an increase in fringe benefits, such as paid vacations and overtime pay e. wealthy landowning class and a poor working class
If the cost of medical care increases by 40 percent, then, other things the same, the CPI is likely to increase by about
a. 0.9 percent. b. 3.2 percent. c. 8.0 percent. d. 40 percent.