Inflation And Deflation Quiz 13 (25 MCQs)

Quiz Instructions:

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1. Which explanation best explains the effects of inflation?

2. What is the relationship between inflation and unemployment?

3. True or false? An expectation of increasing inflation is likely to slow down household consumption.

4. In those countries that do not have well-developed capital markets

5. In an economically stable country, prices usually _____

6. Economics is a study of choices becausse _____

7. Deflation is uncommon in the real world because

8. Which of the following economic stages have the lowest inflation?

9. What is the likely effect of deflation on national income?

10. What inevitably leads to economic collapse. (a)

11. Consumer spending increased in 2010.What other economic indicator is most likely to have increased as a result of the rise in consumer spending?

12. More expansion of foreign direct investment can boost:

13. What was Germany no longer able to do by 1923 (and break the agreement of the Treaty of Versailles)?

14. Which of the following is TRUE about inflation?

15. If money is neutral,

16. What is a possible long-term result of demand-side deflation?

17. Demand-pull inflation often occurs because a government

18. Hyperinflation occurs when:

19. Which of the following would cause Demand Pull inflation

20. How does inflation affect different sectors of the economy?

21. What happens to the value of savings during inflation?

22. Which of the following describes demand-pull inflation

23. After Haiti's earthquake destroyed much of the productive capital in the nation, it also experienced massive inflation. The inflation was likely

24. Name one cause of deflation.

25. In the U.S., deflation occurs