In 2007, the Zimbabwe government enacted a policy that forced merchants to lower prices. This policy was taken to fight the country’s hyperinflation. In 2008, the Zimbabwe government further attempted to stop its hyperinflation by removing ten zeros off of its currency, effectively turning 10 billion Zimbabwe dollars into 1 dollar.

a) Based on you answer for question 6, predict the success of the Zimbabwe government’s actions.

b) To see if your prediction is correct, visit the CIA’s Web site (www.cia.gov), and look up Zimbabwe’s inflation rate for 2008 in The World Factbook.