When disposable income is 1000, how much is saving?
-200
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How were Smith, Ricardo, Malthus and Marx, in their own ways, pessimistic about long-term development?
What will be an ideal response?
The economy can operate
A) beyond its institutional PPF but not beyond its physical PPF. B) on both its institutional PPF and its physical PPF, but not at the same time. C) under its physical PPF but not under its institutional PPF. D) a and b E) a, b, and c
Explaining exchange rate behavior in the long run assumes that changes in price levels and real interest rates affect nominal exchange rates so that interest parity and PPP hold. Short-run deviations from PPP may be explained by an alternative theory called the:
a. relative PPP approach. b. asset approach to exchange rate determination. c. long-run equilibrium approach. d. law of one price.
To obtain a given real rate of return, lenders must charge a ________ nominal interest rate in the face of decreasing inflation.
A. regular B. constant C. lower D. higher