An economist would be more likely to argue for reducing inflation if she thought that
a. the central bank lacked credibility and if bonds were usually not indexed for inflation.
b. the central bank lacked credibility and if bonds were usually indexed for inflation.
c. the central bank had credibility and if bonds were usually not indexed for inflation.
d. the central bank had credibility and if bonds were usually indexed for inflation.
d
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A surplus will tend to occur at which price in Figure 4-21?
A. P1 B. P2 C. P3 D. There will be no surplus at the prices shown.
Suppose the same basket of goods costs $200 in the U.S. and 100 pounds in Britain and that the exchange rate is $3 per pound. According to purchasing power parity, if the two countries' price levels do not change, what will happen to exchange rate?
a. The pound would appreciate until the exchange rate reaches $3 per pound. b. The pound would depreciate until the exchange rate reaches $2 per pound. c. The pound would depreciate until the exchange rate reaches $0.50 per pound. d. The dollar price of a pound would remain at $10. e. The pound would appreciate until the exchange rate reaches $4 per pound.
Which of the following is not an example of a factor of production?
A. A forest. B. A computer program. C. A labor leader. D. Dollars.
All of the following are examples of illegal per se activities except which one?
A) output restrictions B) bid rigging C) price-fixing D) resale price maintenance