Money Answers
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Demand-pull inflation happens when the demand for goods
A
remains very low.B
shifts up and down.C
matches the supply.D
increases.2
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Consumers having more money to purchase computers will most likely result in
A
a decrease in prices for computers and computer accessories.B
an increase in prices for computers and computer accessories.C
a decrease in prices for computers, but not computer accessories.D
an increase in prices for computers, but not computer accessories.3
What are the signs of high inflation? Check all that apply.Production begins to fall.Production begins to rise.Interest rates decrease.Interest rates increase.Purchasing power falls.Fewer fixed rate bank loans.
A
Production begins to fall.B
Production begins to rise.C
Interest rates decrease.D
Interest rates increase.E
Purchasing power falls.F
Fewer fixed rate bank loans.4
Which scenario is an example of demand-pull inflation?
A
Consumers have more money to buy cars, and the prices of cars and car accessories rise as a result.B
An increase in workers’ wages raises the production cost of cars, and car prices rise as a result.C
The demand for cars falls as consumers have less disposable income, and car prices fall as a result.D
A government bailout helps car manufacturers lower their costs, and car prices fall as a result.5
Typically, high inflation is a sign of
A
a healthy economy because it results from a fall in production costs.B
a healthy economy because it results from a rise in consumer interest.C
a struggling economy because wages cannot keep up with the increase in prices.D
a struggling economy because it results from a fall in consumer interest.8
Typically, low inflation is a sign of
A
a healthy economy because it results from a steady rise in demand.B
a healthy economy because it results from a steady rise in supply.C
a struggling economy because it results from a steady fall in demand.D
a struggling economy because it results from a steady fall in supply.10
Hyperinflation can occur when
A
consumers begin purchasing more goods.B
producers need more money to make and distribute goods.C
companies raise prices to pass on costs to consumers.D
the government prints a ton of money in order to pay off its debt.11
What is one consequence of stagflation?
A
The economy drastically slows down as money loses its buying power.B
Producers cannot keep up with consumer interest and raise their prices.C
There are not enough workers to meet the rising level of production.D
Demand is too high and people spend more money than they should.12
The equation calculates an annual rate in economics.What rate does the equation calculate?
A
employment rateB
inflation rateC
demand rateD
supply rate13
Which is an effect of stagflation?
A
Trade with other economies increases.B
The value of a country’s currency drops.C
Prices for goods fall sharply and suddenly.D
The GDP rises along with production levels.Did you find these answers helpful?
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