A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that
A) the value of x never changes.
B) the value of y does not depend on the value of x.
C) the ratio of x to y is constant.
D) the slope of the line is not defined because y never changes.
B
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A nation that currently has a surplus in its capital account is called a
A) debtor nation. B) net lender. C) net borrower. D) current account surplus nation. E) creditor nation.
Refer to Figure 12.2. Suppose the economy is initially above potential GDP, and the actual inflation rate is greater than the expected inflation rate
If the Fed wants to achieve the goal of price stability, this would be represented by a movement on the Phillips curve from A) point A to point B. B) point C to point B. C) point B to point A. D) point A to point B to point C.
(Refer to the figure provided in the text.) For the share of income spent on food to remain constant as income rises, the Engel curve must
a. lie above the 45-degree line. b. lie below the 45-degree line. c. be equal to the 45-degree line. d. bisect the 45-degree line.
Define the terms financial sector and real sector. Describe the processes by which a number of banks becoming insolvent (or approaching insolvency) can have an adverse impact on the real sector