Following the Collapse of the Command Socialist System in 1991

question 116

Multiple Choice

Following the collapse of the command socialist system in 1991, prices in Russia:

• A) increased by as much as 10-fold in 6 months.
• B) shot up because banks made too many loans and increased the money supply too much.
• C) increased rapidly during the transition because price floors had been set too low; once price liberalization began, they subsequently rose very rapidly.
• D) fell as fear of the future led Russian consumers to reduce their consumption.

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