Recall the Application About the Study by Thomas J

question 41

Multiple Choice

Recall the Application about the study by Thomas J. Sargent of hyperinflations after World War I in Germany, Austria, Hungary, and Poland, and how those hyperinflations ended, to answer the following question(s) .
-According to this Application, Sargent found that in each of the four cases studied, hyperinflation ended

• A) when governments stopped relying on their central banks to finance their debt and instead sold their debt to private parties.
• B) when governments stopped relying on private parties to finance their debt and instead sold their debt to their central banks.
• C) when central banks stopped issuing money and instead relied on increased tax revenues to finance government debt.
• D) when governments implemented austerity programs which banned the issuance of any new government bonds.

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Definitions:

Limited Liability

An advantage of the corporate form. Stockholder liability for the actions of a company is limited to the value of the stock. That is, a suit against the corporation cannot be made against a stockholder simply because the stockholder is an owner.

Proprietorships

A type of business entity that is owned and operated by a single individual, without any legal distinction between the owner and the business.

Sole Proprietor

An individual who owns and operates a business alone, bearing unlimited liability for the business's debts and obligations.

Ease Of Formation

The relative simplicity or complexity involved in establishing a new company or business entity.