What usually decreases as the rate of inflation increases?
A. Money supply
B. Interest rates
C. Export quotas
D. Purchasing power
D. Purchasing power
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During the 1990s, Japan experienced periods of deflation and very low nominal interest rates, approaching zero percent. Why would lenders of money agree to a nominal interest rate of almost zero?
What will be an ideal response?
Suppose the U.S. economy is producing at the natural rate of output. An appreciation of the U.S. dollar will cause ________ in real GDP in the short run and ________ in inflation in the long run, everything else held constant
(Assume the appreciation causes no effects in the supply side of the economy.) A) an increase; an increase B) a decrease; a decrease C) no change; an increase D) no change; a decrease
From an economist's perspective, information is a product, but differs from other goods and services in all of the following ways except which one?
A) It is expensive to produce, but cheap to communicate. B) One firm's use of information does not prevent other firms from simultaneously using the exact same information. C) It is expensive to produce, but cheap to copy. D) Information created by firms cannot be protected through government laws.
The items held constant in the study of economic theory is known as the determinants of demand and the determinants of supply
a. True b. False Indicate whether the statement is true or false