the economics of money, banking, and financial markets

845 $

© 2014 Pearson Canada Inc.$

42. 
    

    Between 1981 and 1981, Canada experienced ____.
    A) a reduction in inflation
    B) a gradual increase in inflation
    C) a sharp increase in inflation
    D) lower than average interest rates
    Answer: A
    Diff: 2 Type: MC Page Ref: 632
    Skill: Recall
    Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
    discretion policy debates

    
    


43. 
    

    In the first half of 1985, Bolivia's inflation rate was approximately ____.
    A) 200,000 percent
    B) 20,000 percent
    C) 2,000 percent
    D) 200 percent
    Answer: B
    Diff: 2 Type: MC Page Ref: 632
    Skill: Recall
    Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
    discretion policy debates

    
    


44. 
    

    In August 1985, the Bolivian government announced ____.
    A) it would no longer pay government employees with money
    B) the New Economic Policy
    C) a credible nominal anchor
    D) a change in the head of state
    Answer: A
    Diff: 2 Type: MC Page Ref: 632
    Skill: Recall
    Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
    discretion policy debates

    
    


45. 
    

    Which of the following formed part of the Bolivian government plan to reduce inflation?
    A) Daily balancing of the budget
    B) Contractionary monetary policy
    C) Creation of a new currency
    D) nationalization of 10 percent of private industrial activity
    Answer: A
    Diff: 2 Type: MC Page Ref: 630
    Skill: Recall
    Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
    discretion policy debates