Do changes in relative inflation rates affect the value of a nation’s currency?
What will be an ideal response?
If the inflation rate in one country rises relatively more than in another, the currency in the higher inflation country is likely to depreciate as domestic consumers seek less expensive foreign imports and increase the demand for foreign currency. At the same time, demand for domestic currency will fall since foreigners will find it less attractive to buy the country’s goods at an inflation rate. This, too, adds to the depreciation of the higher-priced country’s currency.
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Productivity is _________ per unit of ___________.
A. output; input B. input; output C. labor; capital D. None of these choices are true.
Indirectly, the government has improved the quality of information available to consumers through
a. the SEC. b. its support for the Internet. c. the Federal Reserve System. d. requiring content labels on food products.
Consider what most economists believe is the effect of minimum wage on unemployment in the United States. Based on that, in which of the following types of countries would the minimum wage have the most significant effect on unemployment?
a. countries with a high GDP b. countries with a low life expectancy c. countries with a high infant mortality rate d. countries with a high level of union participation
Commercial bank reserves are an asset to commercial banks but a liability to the Federal Reserve Bank holding them.
Answer the following statement true (T) or false (F)