The reason for the increase in inflation risk over time is due to the fact that:
A. the inflation rate always increases over time.
B. we always have inflation.
C. investors are more focused on nominal returns than real returns.
D. it is more difficult to forecast inflation over longer periods of time.
Answer: D
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Which of these is an example of a controllable factor for a firm that sells pizzas
a. The price of the pizza b. The delivery rates of the pizza c. The quality of the wings sold by the street vendor across the street d. Both A & B
Government outlays
What will be an ideal response?
Generally speaking, a country whose currency appreciates will experience, as a result,
A. Reduced aggregate demand as a result of a decrease in exports. B. Increased exports. C. Inflationary pressure from higher import prices. D. Increasing interest rates from capital inflow.