Deflation is generally considered by economists to be a positive economic situation because it creates strong job growth

Indicate whether the statement is true or false.


Answer: False.

Economics

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Which of the following most likely describes economics?

a. Economics is not a form of moral instruction. b. Economics is a form of moral instruction. c. Economics seeks to describe economic behavior as it should exist. d. Economics does not seek to describe behavior.

Economics

When exports exceed imports there is a(n):

A. trade balance. B. trade surplus. C. output gap. D. trade deficit.

Economics

If $1 is worth 0.70 euros, then 1 euro is worth:

A. $7.43. B. $0.70. C. $1.43. D. $7.00.

Economics

Advocates of floating rate suggested it is favorable for economies for all of the following reasons EXCEPT

A) it discourages attack from foreign exchange speculators because of the fact that exchange rate adjustment is immediate. B) it helps stabilize the shock effect on unemployment in case of economic changes such as fall in export demand. C) it automatically matches the domestic inflation with ongoing foreign inflation. D) it gives every country the opportunity to guide its own monetary conditions at home. E) it brings the LR exchange rate to the level predicted by PPP without government policy decisions.

Economics