If Year 1 is the base year, the growth of real GDP is approximately
A) 100%.
B) 109.5%.
C) 137.5%.
D) 148%.
C
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Which of the following statements is true?
A) Defending an overvalued currency is easier than defending an undervalued currency. B) Defending an undervalued currency is easier in the short run than in the long run. C) The nominal exchange rate is the ratio of the same basket of goods in two countries. D) The real exchange rate is calculated by dividing the nominal exchange rate by the inflation rate.
The parent company would want to reward managers based on division revenues because
a. It decreases the incentives for the managers to make good decisions for their division b. It increases the incentives for the managers to make good decisions for their divisions c. It does not change the motivations for the managers d. None of the above
In general, entrepreneurs prefer:
A. more diversification, to reduce the risk of their ventures. B. more diversification, to increase the risk and payoff of their ventures. C. less diversification, to reduce the risk of their ventures. D. less diversification, to increase the risk and payoff of their ventures.
The effectiveness of monetary policy as a stabilization tool is limited by
a. activist economists, who exert pressure on politicians. b. the inability to forecast the future and time policy changes in a stabilizing manner. c. Congressional attempts to offset changes in monetary policy with modifications in fiscal policy. d. the inability of the Federal Reserve to alter the money supply.