When prices are measured in terms of fixed (base-year) prices they are called ________ prices
A) nominal
B) real
C) inflated
D) aggregate
B
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Foreign currency prices of the U.S. dollar are currently determined by a managed float exchange rate system
Indicate whether the statement is true or false
An increase in government spending
A) increases consumption and output. B) increases consumption, decreases output. C) decreases consumption, increases output. D) decreases consumption and output.
When a rise in the price of one item results in a decrease in the demand for another good, then the two goods are
A) substitute goods. B) complementary goods. C) inferior goods. D) satisfying the law of supply.
Firms that offer contracts through which individuals pay premiums to insure against some loss are known as:
A. thrifts B. mutual fund companies C. insurance companies D. investment banks