ch17 - Chapter17 MoneyGrowthandInflation MULTIPLECHOICE 1 .

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Chapter 17 Money Growth and Inflation MULTIPLE CHOICE 1 . Inflation can be measured by the a. change in the consumer price index. b. percentage change in the consumer price index. c. percentage change in the price of a specific commodity. d. change in the price of a specific commodity. 2 . Over the last 60 years the average annual U.S. inflation rate was about a. 2 percent. b. 3 percent. c. 5 percent. d. 7 percent. 3 . Over the last 60 years the average annual U.S. inflation rate was about a. 3 percent implying that prices have increased 12-fold. b. 5 percent implying that prices have increased 12-fold c. 3 percent implying that prices have increased 18-fold. d. 5 percent implying that prices increased about 18-fold. 4 . When prices are falling, economists say that there is a. disinflation.
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b. deflation. c. a contraction. d. an inverted inflation. 5 . Which of the following statements about U.S. inflation is false? a. Low inflation was viewed as a triumph of President Carter's economic policy. b. There were long periods in the nineteenth century during which prices fell. c. The U.S. public has viewed inflation of even 7 percent as a major economic problem. d. The U.S. inflation rate has varied over time, but international data shows even more variation. 6 . Which of the following concerning the history of U.S. inflation is false? a. Prices rose at an average annual rate of about 5 percent over the last 60 years. b. There was about an 18-fold increase in the price level over the last 60 years. c. Inflation in the 1970s was below the average over the last 60 years. d. The United States has experienced periods of deflation. 7 . There was hyperinflation a. during 1880–1896 in the United States. b. in post–World War I Germany. c. during the 1970s in the United States. d. All of the above are correct. 8 . Which of the following events in post–World War I Germany likely contributed to the rise of Nazism and World War II? a. deflation that proved detrimental to farmers b. an aversion to inflation by policymakers that kept wages stagnant
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c. an unexpected drop in inflation that hurt borrowers d. an extraordinarily high rate of inflation 9 . The classical theory of inflation a. is also known as the quantity theory of money. b. was developed by some of the earliest economic thinkers. c. is used by most modern economists to explain the long-run determinants of the inflation rate. d.
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This note was uploaded on 04/14/2010 for the course ECON Econ 102 taught by Professor Kimball during the Winter '09 term at Harvard.

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ch17 - Chapter17 MoneyGrowthandInflation MULTIPLECHOICE 1 .

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