During the German hyperinflation of the 1920s, the large increases in the money supply were generated by the German government
A) significantly lowering the required reserve ratio to enable German businesses to obtain loans.
B) significantly raising the required reserve ratio to reduce business loans.
C) printing large quantities of German marks.
D) selling large quantities of government bonds to the central bank, the Reichsbank.
Answer: D
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When a unit tax of $2 is levied on a product
A) the entire $2 is paid by the consumer. B) the entire $2 is paid by the producer. C) both the consumer and producer pay $2 each. D) the consumer pays part of the $2 and the producer pays the rest.
Division of iron ore between the production of bridge girders and tanker drums is an example of
A. a distribution problem. B. production planning. C. input-output analysis. D. both output selection and distribution.
A major advantage to owners of preferred stock over common stock is that owners of preferred stock have voting rights
Indicate whether the statement is true or false
Which of the following appropriately applies the law of comparative advantage?
a. Countries with small amounts of labor relative to capital should specialize in producing labor-intensive commodities. b. Since Mexican labor is cheaper than American labor, trade between the countries results in exploitation of American workers. c. Since workers in countries such as the United States utilize larger amounts of capital than workers in less developed nations, trade between capital-rich and capital-poor nations results in the exploitation of labor in the less developed countries. d. Countries that are low cost producers of agricultural products should trade those products for goods they can produce only at a high opportunity cost.