Recall the Application About the Study by Thomas J

question 91

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 the governments were overthrown and the central banks were dissolved.
• B) with the creation of a central bank and change in the way that governments were financed.
• C) when the central banks were given less independence and the governments required the central banks to stop printing money.
• D) by increases in government spending to stimulate the economy and boost the private sector.

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Definitions:

Cohesive Group

A group in which members exhibit strong bonds, loyalty, and mutual support, often leading to higher group effectiveness.

Lowball Technique

A persuasion and negotiation tactic where an item or service is offered at a lower price than is actually intended to be charged, after which the price is increased to take advantage of the customer's commitment.

Formal Wear

Clothing that is traditionally designed for formal social events, such as weddings, galas, and dances.

Reciprocity Norm

A social norm that suggests individuals should help those who have helped them, creating a cycle of mutual assistance.