This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Inflation And Deflation > Inflation And Deflation – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Inflation And Deflation Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A decrease in general price level is called ..... A) Hyperinflation. B) Low inflation. C) Deflation. D) Disinflation. Show Answer Correct Answer: C) Deflation. 2. Who did the French send into the Ruhr coalfields after Germany failed to pay their reparations? A) French women and children. B) French troops. C) French politicians. D) French footballers. Show Answer Correct Answer: B) French troops. 3. When someone says "in today's dollars", they are ..... A) Talking about money that they earned today. B) Adjusting for inflation. C) Complaining about taxes. D) None of above. Show Answer Correct Answer: B) Adjusting for inflation. 4. Which is an effect of inflation on consumers? A) Increases the real value of debt. B) Increases real value of investment. C) Decreases real value of savings. D) Leads to possible lower interest rates. Show Answer Correct Answer: C) Decreases real value of savings. 5. Inflation caused by a rise in wage rates would be classified as ..... A) Demand pull. B) Demand push. C) Cost push. D) Cost pull. Show Answer Correct Answer: C) Cost push. 6. What percentage of German coal, iron and steel reserves did the Ruhr contain? A) 1%. B) 10%. C) 50%. D) 80%. Show Answer Correct Answer: D) 80%. 7. The quantity of goods and services a person can buy with a given amount of money. A) Bank. B) Inflation. C) Buying Power. D) None of above. Show Answer Correct Answer: C) Buying Power. 8. What is the highest point of real GDP called? A) Contraction. B) Expansion. C) Peak. D) Trough. Show Answer Correct Answer: C) Peak. 9. ..... is when prices fall and the value of money increases. A) Inflation. B) Deflation. C) Fixed Income. D) Cost-Push Inflation. Show Answer Correct Answer: B) Deflation. 10. Inflation increases all price, including wages A) Correct. B) False. Show Answer Correct Answer: A) Correct. 11. Real flow is also known as nominal flow A) False. B) True. Show Answer Correct Answer: A) False. 12. With inflation, Aggregate Demand is greater than Aggregate Supply A) True. B) False. Show Answer Correct Answer: A) True. 13. If minimum wage is $ 10 an hour now, and it keeps up with inflation at a rate of 8%, how much would it be 50 years from now? A) $ 160. B) $ 469. C) $ 46.60. D) $ 10. Show Answer Correct Answer: B) $ 469. 14. Which of the following is most likely to gain from deflation? A) Lenders. B) Firms. C) Borrowers. D) Workers. Show Answer Correct Answer: A) Lenders. 15. Which is most likely to lead to a fall in the rate of inflation? A) A decrease in import prices. B) A decrease in income tax. C) An increase in consumer spending. D) An increase in unemployment benefits. Show Answer Correct Answer: A) A decrease in import prices. 16. True or false? Inflation is most likely to increase during economic expansion? A) True. B) False. Show Answer Correct Answer: A) True. 17. A person who is looking for full-time work, but who only works part-time is described as ..... A) Not a member of the workforce. B) Underemployed. C) Unemployed. D) Employed. Show Answer Correct Answer: B) Underemployed. 18. What does the term 'real' mean in relation to prices? A) Prices that have been adjusted for inflation. B) Prices that haven't been adjusted for inflation. C) Prices that are influenced by market trends. D) Prices that are based on consumer preferences. Show Answer Correct Answer: A) Prices that have been adjusted for inflation. 19. What did Friedrich Ebert's government do to solve the problem of inflation/rising prices? A) He printed off more money. B) He did nothing. C) He ordered a reduction in prices. D) None of above. Show Answer Correct Answer: A) He printed off more money. 20. Which of the following describe as 'a very rapid and large rise in the price level'? A) Cost-push inflation. B) Demand-pull inflation. C) Monetary inflation. D) Hyperinflation. Show Answer Correct Answer: D) Hyperinflation. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesInflation And Deflation Quiz 1Inflation And Deflation Quiz 2Inflation And Deflation Quiz 3Inflation And Deflation Quiz 4Inflation And Deflation Quiz 5Inflation And Deflation Quiz 6Inflation And Deflation Quiz 7Inflation And Deflation Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books