In 1980, one Zimbabwean dollar was worth 1.47 U.S. dollars. By the end of 2008, the exchange rate was one U.S. dollar to 2 billion Zimbabwean dollars

When an economy experiences rapid increases in the price level such as what occurred in Zimbabwe, the economy is said to experience
A) inflation. B) stagflation. C) hyperinflation. D) deflation.

C

Economics

You might also like to view...

Which of the following is true regarding a price support set above the equilibrium price?

i. The price support increases the price consumers pay. ii. The price support creates a deadweight loss. iii. The price support decreases output. A) i and ii B) i and iii C) iii only D) i, ii, and iii E) i only

Economics

Discuss the effects of a rise in the dollar interest rate on the exchange rate

What will be an ideal response?

Economics