In the Early 1990s, Serbia, a Developing Country, Experienced Hyperinflation

question 84

Multiple Choice

In the early 1990s, Serbia, a developing country, experienced hyperinflation because its central bank increased the money supply too rapidly. Serbia's central bank most likely adopted this monetary policy because:

• A)it didn't care about inflation.
• B)it believed that its actions would not trigger inflation.
• C)the Serbian government granted independence to the central bank.
• D)the Serbian government had no other way to finance its expenditures.

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Definitions:

Valley

An elongated lowland between ranges of mountains or hills, often having a river or stream running along the bottom.

Ridge

On a weather map, an elongated area of high atmospheric pressure.

Valley Glacier

A glacier that flows down a valley and tends to be narrow; synonym: alpine glacier.

Ribbon Glacier

A type of long, narrow glacier, usually formed in mountain terrains, resembling a ribbon in aerial views.