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:

Direct Labor Hours

Total count of hours devoted by employees in the direct creation of goods or offering of services.

Special Order

A special order involves a one-time or exceptional purchase of goods or services made to customer specifications that may differ from standard offerings.

Variable Costs

Outlays that adjust in response to the volume of production or sales figures.

Fixed Manufacturing Overhead

Represents the production costs that do not change with the level of manufacturing activity, such as salaries of managerial staff and rent of the factory.