Under the monetary approach to exchange rate theory, money supply growth at a constant rate
A) eventually results in ongoing price level deflation at the same rate, but changes in this long-run deflation rate do not affect the full-employment output level or the long-run relative prices of goods and services.
B) eventually results in ongoing price level inflation at the same rate, but changes in this long-run inflation rate do affect the full-employment output level and the long-run relative prices of goods and services.
C) eventually results in ongoing price level inflation at the same rate, but changes in this long-run inflation rate do not affect the full-employment output level or the long-run relative prices of goods and services.
D) eventually results in ongoing price level inflation at the same rate, but changes in this long-run inflation rate do not affect the full-employment output level, only the long-run relative prices of goods and services.
E) eventually results in ongoing price level deflation at the same rate, but changes in this long-run deflation rate do not affect the full-employment output level, only the long-run relative prices of goods and services.
C
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An oligopoly market consists of:
a. many firms which produce a standardized product. b. at least five firms one of which dominates the market. c. firms that make independent pricing and output decisions. d. a group of firms that dominate the market. e. firms which face perfectly elastic demand curves.
Which of the following individuals would be considered unemployed?
a. a lawyer temporarily working as an assistant in a law firm b. a computer technician who has not worked for 10 months and gave up looking 4 months ago c. a full time student who feel that he is taking too many classes to work d. none of the above
Why may a "black market" develop in nations in which government has imposed capital controls?
a. All foreign currency purchases and sales are conducted and controlled by the government, and it is illegal to trade privately. b. Traders are trying to avoid the taxes they must pay on each transaction. c. The government makes a huge profit on currency trades that the private sector wants access to. d. None of these explains why a "black market" may develop in these nations.
Which of the following is a leakage?
A. Government spending. B. Investment. C. Aggregate demand. D. Imports.