In September 2008, the MONTHLY rate of inflation in Zimbabwe approached 489 BILLION percent. An inflation rate such as this would
A) be too high to calculate using the CPI. B) decrease the natural rate of unemployment.
C) seriously disrupt normal commerce. D) all of the above.
C
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The order of integration
A) can never be zero. B) is the number of times that the series needs to be differenced for it to be stationary. C) is the value of ?1 in the quasi difference(?Yt - ?1Yt-1). D) depends on the number of lags in the VAR specification.
Refer to the graph below. If the output level increases from Q2 to Q3, then the:
A. Marginal cost of the product becomes closer to its marginal benefit
B. Marginal cost of the product increases while its marginal benefit decreases
C. Marginal cost of the product decreases while its marginal benefit increases
D. Marginal cost of the product stays constant while its marginal benefit increases