In Less Than Two Years in the Early 1920s,the Cost

question 46

Multiple Choice

In less than two years in the early 1920s,the cost of a German newspaper rose from 0.30 marks to 70,000,000 marks.This is a spectacular example of

• A)market power caused by a change in the country's standard of living.
• B)market power caused by a single firm controlling the newspaper production.
• C)inflation caused by increased productivity in the economy.
• D)inflation caused by an increase in the quantity of money in the economy.

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