Germany Could Have Avoided the High Inflation That It Experienced

question 26

Multiple Choice

Germany could have avoided the high inflation that it experienced in the 1920s by

• A)not directing so many of its resources toward preparation for World War II.
• B)not increasing taxes so much on the German middle class.
• C)not allowing the quantity of money to increase so rapidly.
• D)using government policies to stimulate the economy more so than what was done.

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Definitions:

Operating Cycle

The duration of time it takes for a company to buy inventory, sell it to customers, and collect the cash from sales.

Merchandiser

An individual or company involved in the wholesale purchase and retail sale of goods for profit.

Sales Revenue

The money made from offering goods or services for sale over a specified duration.

Sales Discounts

Sales discounts are reductions in price offered by sellers to encourage buyers to make a purchase, often recorded as a deduction from gross sales.