Which of the following contributed to the emergence of hyperinflation in Germany in the early 1920s?
A) payment of massive war reparations required by the Versailles Peace Treaty
B) huge budget deficits financed by printing paper money
C) decreased desire to hold money on the part of the German people
D) All of the above
D
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In the long-run equilibrium for a perfectly competitive market, firms will choose the level of output where
a. profit is minimized b. short-run average total cost is minimized c. long-run average total cost is minimized d. short-run profit is maximized e. long-run average fixed cost is minimized
Countries that have a higher degree of economic freedom tend to
a. invest a larger share of their output, but the productivity of that investment is lower than for economies that are less free. b. invest a smaller share of their output, but the productivity of that investment is higher than for economies that are less free. c. invest a larger share of their output and the productivity of that investment is higher than for the economies that are less free. d. invest a smaller share of their output and the productivity of that investment is lower than for economies that are less free.
A barter arrangement simply means
A. that gold must be offered from one party. B. the government has to facilitate the exchange. C. a direct exchange of goods without the use of money. D. a promise to pay in the future.
Commodity money
A) has value independent of its use as money. B) has little to no value independent of its use as money. C) is backed by a valuable commodity such as gold. D) can be used to purchase commodities, but not services.