During the German hyperinflation of the 1920s, the large increases in the money supply were generated by the German government
A) significantly raising the required reserve ratio to reduce business loans.
B) significantly lowering the required reserve ratio to enable German businesses to obtain loans.
C) selling large quantities of government bonds to the central bank, the Reichsbank.
D) printing large quantities of German marks.
C
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A higher nominal interest rate ________ the profit-maximizing level of MPK for firms, leading firms to a ________ capital-output ratio, thus ________ net investment
A) raises, higher, raising B) raises, lower, lowering C) lowers, higher, raising D) lowers, higher, lowering E) lowers, lower, raising
Severance taxes do not allow companies to shift any the tax burden to demanders because the supply of natural resources is completely inelastic
a. True b. False