A rise in the domestic interest rate leads to capital outflows and makes the currency depreciate
a. True
b. False
Indicate whether the statement is true or false
False
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If your nominal income in 2014 is $50,000, and prices increase by 50% between 2014 and 2017, then to have the same real income, your nominal income in 2017 must be
A) $50,000. B) $75,000. C) $100,000. D) $150,000.
Congress established the FOMC because
A) a group was needed to set reserve requirements for member banks. B) of a lack of coordination among district banks in carrying out open market operations. C) Congress was attempting to expand its influence within the Federal Reserve System. D) a group was needed to coordinate the setting of discount rates by the district banks.
Higher inflation makes relative prices
a. more variable, making it more likely that resources will be allocated to their best use. b. more variable, making it less likely that resources will be allocated to their best use. c. less variable, making it more likely that resources will be allocated to their best use. d. less variable, making it less likely that resources will be allocated to their best use.
An increase in the overall price level is known as
A. inflation. B. deflation. C. stagflation. D. recession.