When hyperinflation occurs,
A) GDP falls to zero.
B) interest rates fall.
C) savings rates rise.
D) money is a less effective medium of exchange.
Correct Answer:
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Q34: In the United States, currency is
A) backed
Q35: Deflation is another word for
A) falling prices.
B)
Q36: If people lost confidence in the medium
Q37: On a commercial bank's balance sheet, a
Q38: When hyperinflation occurs, money becomes a less
Q40: An effective medium of exchange must
A) be
Q41: A bank's excess reserves are equal to
A)
Q42: A bank can create new money only
Q43: Velocity is the relationship between a change
Q44: Assume that nominal GDP is $2 trillion
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