When the dollar appreciates, the cost to Americans of foreign goods
A. rises and the CPI falls.
B. rises and the CPI rises.
C. falls and the CPI rises.
D. falls and the CPI falls.
Answer: D
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Subsidizing education can lead an efficient level of production because education has external benefits
Indicate whether the statement is true or false
Through its impact on the desired stock of housing, higher expected income would lead to ________
A) an increase in residential investment B) a decrease in expected house price appreciation C) a decrease in residential investment D) a decrease in single-family dwellings
If something is used as a measure of value, then a necessary condition is that it must
a. serve as a yardstick for measuring the value of other goods b. be a precious metal, such as gold or paper money c. be convertible into gold d. be used in barter exchange e. be accepted as payment for any purchase