During the German hyperinflation of the 1920s, the large increases in the money supply were generated by the German government
A) significantly lowering the required reserve ratio to enable German businesses to obtain loans.
B) significantly raising the required reserve ratio to reduce business loans.
C) printing large quantities of German marks.
D) selling large quantities of government bonds to the central bank, the Reichsbank.
Answer: D
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Over the long run, a government's fundamental source of revenues is
A) printing money. B) user fees and taxes. C) exports. D) gold sales.
Which of the following is a TRUE statement?
A) Opportunity cost is always measured in the nation's currency. B) Opportunity cost is an objective measure since the cost of an activity is the same for everyone. C) The fewer alternatives there are the greater the opportunity cost. D) Opportunity cost is always a foregone opportunity.