A leading countercyclical variable ________
A) reaches a peak before the peak of the business cycle
B) reaches a trough before the peak of the business cycle
C) reaches a trough along with the trough of a business cycle
D) all of the above
E) none of the above
B
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Policies to keep inflation in check ________
A) are, typically, fiscal policies B) are a potential cause of high unemployment C) are unlikely to be needed, so long as government spending remains high D) include increasing the quantities of money and saving E) are desirable in the short run, but may produce bad long-run outcomes
In the next several decades, the dependency ratio relevant to the Social Security system is expected to ________
A) remain largely unchanged B) rise C) fall D) fluctuate unpredictably
If the government passed a law designating sea shells as money, sea shells
a. would not be legal tender b. would not function as money because they would be unable to serve as a unit of account c. would not function as money because they would be unable to serve as a means of payment d. would not function as money because they would be unable to serve as a store of wealth e. would function as money as long as they were accepted in exchange for goods and services
If the dollar appreciates relative to the yen
A. there is no reason to expect either appreciation or depreciation of the yen. B. the yen must depreciate relative to the dollar. C. the yen may also appreciated in value. D. the yen will appreciate only if U.S. exports to Japan exceed U.S. imports from Japan.