During the early 1920s, Germany experienced
A) negative inflation as a result of high money creation.
B) hyperinflation as a result of high money creation.
C) moderate price changes as a result of a recession.
D) hyperinflation as a result of rapidly increasing demand for money.
E) hyperinflation as a result of low money creation.
B
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If the nominal interest rate is greater than the real interest rate,
A) it is an indication of economic growth. B) inflation must be occurring. C) lenders must lose because they can only make loans using the real interest rate. D) the real interest rate must be negative. E) None of the above answers is correct because it is not possible for the nominal interest rate to exceed the real interest rate.
If firms in a monopolistically competitive industry are making an economic profit, then
A) some customers will exit the market. B) some workers will leave the industry's labor force. C) some firms will leave the industry. D) new firms will enter the industry.