Author Question: Inflation in Vietnam rose to 27 percent in July 2008the highest inflation rate in Asia. Squeezed ... (Read 124 times)

ishan · **on:** Jun 29, 2018

Inflation in Vietnam rose to 27 percent in July 2008the highest inflation rate in Asia.

Squeezed on all sides, people are cutting back on food, limiting travel, looking for second jobs, delaying major purchases and waiting for the cost of a wedding to go down before marrying...Given this slowdown, Vietnam... is scaling back its plans for growth and economic development. ... Some are losing confidence in the ability of the government to manage the economy. And rumors of price increases have caused panic buying of fuel and rice. www.nytimes.com, 8/23/2008 The story provides an example of how inflation A) redistributes income.
B) diverts resources from production.
C) leads to increases in the consumer price index.
D) can lead to changes in the CPI market basket.

Question 2

Which of the following is recorded in the U.S. balance of payments account?

I. foreign investment in the United States
II. U.S. investment abroad
III. the U.S. government deficit or surplus
A) III only
B) I and II
C) I and III
D) I, II and III