The Major Reason for the Disintegration of the Soviet Union

question 14

Multiple Choice

The major reason for the disintegration of the Soviet Union and the end of the Cold War in the late 1980s was ____________________.

• A) Ronald Reagan's launching of the Strategic Defense Initiative
• B) a major nuclear power plant disaster in the Soviet Union that virtually destroyed the Soviet economy
• C) a chain of industrial failures in Soviet client states initiated by American covert actions undertaken by the CIA on orders from President Reagan
• D) the rise to power of Mikhail Gorbachev

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Definitions:

Nominal Interest Rate

The stated interest rate on a loan or investment, not adjusted for inflation.

Loanable Funds

The money available for borrowing; the market where savers supply funds for loans to borrowers.

Supply

A relation between the price of a good and the quantity that producers are willing and able to sell per period, other things constant.

Demand

Refers to the quantity of a good or service that consumers are willing and able to purchase at various price levels over a given period of time.