How Could the Information Revolution Affect Urbanization

question 48

Multiple Choice

How could the Information Revolution affect urbanization?

• A) Cities might grow because technology makes them even more attractive places to live.
• B) It could not affect urbanization at all.
• C) Cities might shrink because people will spend even more time in direct contact with one another.
• D) Cities might shrink because people can live anywhere and still work at the same job.
• E) Cities might grow because agricultural efficiency will improve.

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Definitions:

Hyperinflation

An extremely high and typically accelerating rate of inflation, often causing a rapid erosion of the real value of local currency and leading to a collapse in a nation's monetary system.

After-tax Real Interest Rate

The interest rate adjusted for inflation after taxes have been taken into account.

Nominal Interest

The interest rate before adjustments for inflation. In contrast, real interest rates take inflation into account.

After-tax Real Interest Rate

The real interest rate that remains after adjusting for both inflation and the impact of taxes, reflecting the actual earning power of an investment after inflation and tax effects.