Understanding Inflation and Deflation Through History

Understanding Inflation and Deflation Through History

Assessment

Interactive Video

Economics, History, Social Studies

9th - 12th Grade

Hard

Created by

Sophia Harris

FREE Resource

The video explores the effects of inflation and deflation on personal finances through historical examples. It begins with the Gilded Age, illustrating how deflation increased the real value of loans. Post-WWII inflation is discussed, highlighting the need for Social Security adjustments. The video concludes with Venezuela's hyperinflation, showing the drastic devaluation of currency. Understanding these economic phenomena helps protect against financial consequences.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary purpose of the time machine in the video?

To show the impact of technology on inflation

To travel to the future and predict inflation rates

To explore the effects of inflation and deflation in historical periods

To demonstrate how to build a time machine

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In 1893, why was it not a good time for a farmer to borrow money from the bank?

Because the interest rates were too low

Because banks were not lending money

Because deflation increased the real value of the loan

Because inflation was too high

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

By the end of 1895, what was the real value of the $100 loan borrowed in 1893?

$108

$101

$110

$100

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why should retirees in 1946 lobby for automatic inflation adjustments to their Social Security payments?

To ensure their checks keep up with inflation

To increase the nominal value of their checks

To decrease the amount of taxes they pay

To receive additional benefits from the government

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the real value of a $25 Social Security check by the end of 1948?

$15

$18.70

$20

$25

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When were automatic inflation adjustments added to Social Security?

1946

1950

1975

1980

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In 2012, what should a Venezuelan resident do with their 1,000 Bolivars in savings?

Spend the money immediately

Transfer the savings to another currency despite high fees

Invest in local businesses

Keep the Bolivars in savings

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