In 1980, one Zimbabwean dollar was worth 1.47 U.S. dollars. By ...

[jrubin]

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.

Question 2

With free trade between China and the United States, the winners are ___________ and the losers are _______.
 
  A. U.S. consumers of U.S. imports; U.S. producers of the U.S. import good
  B. China's consumers of China's imports; China's producers of its export good
  C. U.S. producers of the U.S. export good; U.S. consumers of U.S. imports
  D. China's consumers of China's export good; China's producers of its imported good

[jlaineee]

Answer to Question 1

C

Answer to Question 2

A Figure 8.3 in the text shows that the U.S. price of the imported good falls, so that U.S. consumers win and U.S. producers lose.