Although Hyperinflations Ultimately Are the Result of Excessive Growth Rates

question 86

Multiple Choice

Although hyperinflations ultimately are the result of excessive growth rates of the money supply, the underlying motive for the excessive money growth rates is frequently a government's:

• A)desire to increase prices throughout the economy.
• B)need to generate tax revenue to pay for spending.
• C)responsibility to increase nominal interest rates by increasing expected inflation.
• D)inability to conduct open-market operations.

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Definitions:

Alkanes

Hydrocarbons containing only single bonds between carbon atoms, with the general formula CnH2n+2.

Solvents

Substances that dissolve a solute, resulting in a solution; typically liquids but can also be solid or gas.

Non-Reactive

A term describing substances that do not easily undergo chemical reactions or bond with other substances.

Lewis Structure

A graphical representation that depicts the bonding between atoms of a molecule and the lone pairs of electrons that may exist.