单选题 Read the following text. Choose the best word or phrase for
each numbered blank and mark A, B, C or D on your ANSWER SHEET. Inflation is an economic condition in{{U}} {{U}}
1 {{/U}} {{/U}}prices for consumer goods{{U}} {{U}} 2
{{/U}} {{/U}}, and the{{U}} {{U}} 3 {{/U}} {{/U}}of money or
purchasing power decreases. There arc three important causes of inflation.
The first and most important cause may be excessive government spending. For
example, in order to{{U}} {{U}} 4 {{/U}} {{/U}}a war or
carry{{U}} {{U}} 5 {{/U}} {{/U}}social programs, the
government may spend more money than it has received through taxes and
other revenue, thus creating a deficit. In order to{{U}} {{U}} 6
{{/U}} {{/U}}this deficit, the Treasury Department can simply{{U}}
{{U}} 7 {{/U}} {{/U}}the money supply by issuing more paper
money to{{U}} {{U}} 8 {{/U}} {{/U}}the debts of
government. This increase in the money supply will cause the value of the
dollar to{{U}} {{U}} 9 {{/U}} {{/U}}decrease. The second cause
of inflation occurs when the money supply increases faster than the supply of
goods.{{U}} {{U}} 10 {{/U}} {{/U}}people have more money, they
will run out to buy popular goods{{U}} {{U}} 11 {{/U}}
{{/U}}televisions and computers, for example, and a shortage will result.
Industry will then produce more, at higher prices, to{{U}} {{U}}
12 {{/U}} {{/U}}demand.{{U}} {{U}} 13 {{/U}} {{/U}}, if
people think that the prices of popular goods are going up, they will buy and
even borrow money at high{{U}} {{U}} 14 {{/U}} {{/U}}rates to
pay for them. Finally, if labor unions demand that workers, wages{{U}}
{{U}} 15 {{/U}} {{/U}}to{{U}} {{U}} 16 {{/U}}
{{/U}}the high cost of living, industry will meet this demand and add other costs
of production on to the{{U}} {{U}} 17 {{/U}} {{/U}}.{{U}}
{{U}} 18 {{/U}} {{/U}}summary, all of these causes can{{U}}
{{U}} 19 {{/U}} {{/U}}inflationary problems that can affect the
welfare of a nation. However, of these three causes,{{U}} {{U}} 20
{{/U}} {{/U}}government spending may be the most important.