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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Which of the following assets is least liquid?
A. Art B. Checking account deposits. C. Common stock D. Houses
Which of the following will not cause the supply curve to shift?
A. A change in the costs of resources needed to produce the good B. A technological change in the production of the good C. A change in the price of the good D. A change in the prices of other goods that producers could be producing
Refer to the information provided in Table 6.3 below to answer the question(s) that follow. Table 6.3Dozens of Oysters per DayTotal UtilityMarginal Utility160?2104?3134?4152?5?8Number ofBeers per DayTotal UtilityMarginal Utility140?270?394?4114?5?14Refer to Table 6.3. The total utility of five beers per day is
A. 70. B. 128. C. 184. D. indeterminate from this information.
In 1990, Britain joined the ERM. If the German Bundesbank increased interest rates, assuming Britain does not maintain its exchange rate peg:
A) the only option available to Britain would be to increase its interest rate. B) the British pound would depreciate. C) the British pound would appreciate. D) the British economy would slow down.