Practice_Qs_Inflation_and_Money - Practice Qs Inflation and...

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Practice Qs Inflation and Money ____ 1. Consider alternative levels of the price index now and the price index one year ago. In which case was the inflation rate 10%? a. price index now 120 and price index one year ago 110 b. price index now 132 and price index one year ago 120 c. price index now 140 and price index one year ago 126 d. None of the above are correct. ____ 2. Hyperinflation refers to a. the spread of inflation from one country to others. b. a decrease in the inflation rate. c. a period of very high inflation. d. inflation accompanied by a recession. ____ 3. The value of money falls as the price level a. rises, because the number of dollars needed to buy a representative basket of goods rises. b. rises, because the number of dollars needed to buy a representative basket of goods falls. c. falls, because the number of dollars needed to buy a representative basket of goods rises. d. falls, because the number of dollars needed to buy a representative basket of goods falls.
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This note was uploaded on 12/28/2010 for the course ECON 004 at Pennsylvania State University, University Park.

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Practice_Qs_Inflation_and_Money - Practice Qs Inflation and...

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