World War I (1914–18) caused inflation because
(a) war production stressed an economy already operating
close to full employment.
(b) fiscal policy mandated it.
(c) the Federal Reserve System required it.
(d) inflation always occurs in times of war.
(a)
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Which is a possible solution to a divisional conflict regarding a decision
a. change the division that has the authority to make the decision b. change the information flow so that the decision maker is better informed c. change the evaluation and reward scheme governing the decision maker d. all of the above
Why do many economists argue that modern macroeconomics began in the 1930s during the Great Depression?
a. The Great Depression disproved many of the concepts of traditional microeconomics, necessitating the growth of a new field of theory. b. The devastating effects of the Great Depression drove economists to discover ways to mitigate unemployment through economic policy. c. Macroeconomics developed as a way to capture growing interest in economics, previously an obscure field of study, following the Great Depression. d. Before the Great Depression, unemployment had little impact on national economies, and macroeconomic principles were largely inapplicable.