If We Look Back at Inflation Data Since 1305, We

question 9

Multiple Choice

If we look back at inflation data since 1305, we see that

• A) during the 20th century we have finally solved the problem of high inflation.
• B) the Industrial Revolution caused the highest inflation rates.
• C) the discovery of America caused prices to fall drastically.
• D) inflation has been highest in the 20th and 21st centuries.
• E) the most rapid inflation occurred prior to 1600.

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Definitions:

Fiat Currencies

Money that a government has declared to be legal tender, though it is not backed by a physical commodity.

Digital Currencies

Electronic money that exists in a digital form, enabling instant transactions and borderless transfer-of-ownership.

Valueless

Lacking in value, importance, or utility; having no worth or significance.

Constant Value

A value that remains unchanged over a period of time, despite external factors or conditions that might otherwise cause variation.