Higher rates of inflation reduce planned spending because:
A. the Fed reacts to the higher inflation by lowering interest rates.
B. resources are redistributed from low-spending households to high-spending households.
C. the real value of money increases.
D. the reduction in wealth, resulting from the reduced real value of money, restricts spending.
Answer: D
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If capital inflows decrease due to higher interest rates in other countries and large amounts of import spending, there will be:
A) upward pressure on a country's exchange rate. B) downward pressure on a country's exchange rate. C) no pressure on a country's exchange rate. D) none of the above.
De Soto's The Other Path encourages poor countries to use their development policies to do all of the following except
A. Reduce regulations. B. Encourage entrepreneurship. C. Encourage population growth. D. Enforce laws to safeguard property.
Revenues when a firm engages in peak-load pricing based on the figure below will be: 
A. (P4 × Q3). B. (P1 × Q2) + (P2 × Q3). C. (P3 × Q1) + (P4 × Q3). D. (P1 × Q1) + (P4 × Q3).
According to a study of the U.S. demand for alcoholic beverages, the price elasticity of demand for beer is -0.30. Which of the following could explain why the price elasticity of demand for beer is low?
A) More and more people are switching to wine and cocktails rather than beer. B) Beer is an inferior alcoholic beverage. C) There are only a few major suppliers of beer. D) The price of beer is relatively low and for many people it is a habit forming product.