High expected inflation leads to ________ increases in wages and costs and to ________ actual inflation.
A. small; high
B. large; low
C. large; high
D. small; low
Answer: C
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The Federal Reserve:
A. is the central bank of the United States. B. sets the budget for the U.S. government. C. is appointed by the president of the United States. D. is responsible for funding federal spending.
In the presence of a negative externality
a. the market marginal benefit curve lies above the market supply curve b. a market will produce less than the efficient quantity c. the market price will be too high for an efficient solution to exist d. the marginal social cost curve lies above the market supply curve e. Pareto optimality is automatically guaranteed
A stock split is most likely to occur when
What will be an ideal response?
For a given nominal exchange rate and foreign price level, an increase in the domestic price level ________ the real exchange rate.
A. decreases B. increases C. offsets any change in D. may either increase or decrease