The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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Property rights that are granted to the creators of original work to produce and sell that work are called
A) trademarks. B) copyrights. C) patents. D) exclusive franchises.
According to the interest parity condition, if the domestic interest rate is 10 percent and the foreign interest rate is 12 percent, then the expected ________ of the foreign currency must be ________ percent
A) appreciation; 4 B) appreciation; 2 C) depreciation; 2 D) depreciation; 4
One of the strong parallels between the development of virtual currencies and the development of currencies in the United States during the 1800s is:
a. Both began as physical currencies. b. They owe their size and stature to governments, worldwide, that supported their growth and development. c. They owe their growth and development to public trust. d. All of the statements above are true.
Demand pull inflation occurs when a nation's:
a. Aggregate demand rises, causing rising prices and rising unemployment. b. Aggregate demand rises, causing rising prices and falling unemployment. c. Aggregate demand rises, which leads to a decrease in aggregate supply and an increase in prices. d. Aggregate supply falls, causing rising prices and rising unemployment.