During inflationary periods, an advantage of the LIFO inventory cost method is that
Open market operations are______.
A.the tool used most often by the central bank
B.seldom used by the central bank
C.used more than the discount rate but not nearly as often as changes in reserve requirements by the central bank
D.used by the central bank only during inflationary periods
Currently, in many countries of the world, people are facing problems caused by inflation, which is a de crease in the purchasing power of money because of continuous rises in the prices of available goods. There are two different kinds of inflation, each of which can affect people's lives.
When inflation is discussed, people generally refer to an increase in prices, wages, and the amount of money circulating in a country’s economy. The most common type of inflation is called creeping inflation be cause there is a steady but manageable increase in the rate of inflation within a year. Prices rise continuously, so that workers ask for higher wages to cover the increasing costs of housing, food, and transportation. Al though such wage increases are inflationary, they are often unavoidable. As a result, a government may have to impose price and wage controls in order to control this type of inflation.
A less common type of inflation is called hyperinflation, which is usually due to war or occupation by a foreign country. During a period of hyperinflation, price levels double rapidly. Because there is too much money available in the economy, the currency decreased in value, and people lose confidence in their government's financial competence. To win back the trust of the people, the government may create a new currency.
Regardless of the type of inflation that a country's economy is experiencing, inflation affects every individual in that society. In the United States, for example, many families could no longer afford to buy at today's prices the homes that they bought years ago. As long as the costs of food and entertainment continue to rise, people will be forced to modify their lifestyles. People on fixed incomes such as pensions or scholar ships have such serious financial problems that they cannot live decently, since their incomes do not keep up with the rate of inflation.
Until there is cooperation not only among individuals within any given country but also among the various governments of the world, inflation will not continue to trouble many of us.
With what topic is the passage primarily concerned?
A.Different causes of inflation,
B.A significant economic issue--inflation.
C.The trouble caused by inflation.
D.The control of inflation.
A、inflationary market
B、deflationary market
C、bull market
D、bear market
A.deflationary
B. inflationary
C. financial
D. fiscal
A、a specific tariff will tend to raise more revenue than an ad valorem tariff.
B、an ad valorem tariff will tend to raise more revenue than a specific tariff.
C、an optimum tariff will tend to raise more revenue than an escalating tariff.
D、a tariff quota will tend to raise more revenue than a specific tariff.
Part of the public policy task, as outlined in the text, is to ______.
A.prevent payments deficit
B.devalue the American dollar
C.avoid inflationary pressures
D.increase the balance of trade
An increase in money wages would be inflationary if______.
A.wages increase at a higher rate than real output
B.productivity gains exceed the wage increase
C.the money supply remains constant as the wage rate increases
D.an expansion of the money supply accompanies the increase in the wage rate
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