PPP holds better for low-inflation countries
Indicate whether the statement is true or false
FALSE
Explanation: Opposite, in high-inflation countries changes in exchange rates are highly correlated with inflation differentials because the sheer magnitude of inflation overwhelms the relative price effects.
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In its basic form, an IRA simply does what to taxes?
A) reduces the tax payments when you save B) eliminates them C) defers their payment to a later time D) passes the taxes on to the rich
If domestic savings was 2 billion last year and domestic investment was -12 billion, then the current account balance is
A) 10 billion. B) -10 billion. C) 14 billion. D) -24 billion.
Herbert Simon has concluded that decision making in industry is often best described as
A. optimizing behavior. B. profit maximizing. C. satisficing. D. saturating.
When we believe the best result will come from the decision we have made, we are being:
A. gullible. B. short-sighted. C. rational. D. considerate.