A fall in the price level:
A. reduces the value of money in peoples' pockets, so people buy less goods.
B. increases the value of money in peoples' pockets, so people buy more goods.
C. increases the value of money in peoples' pockets, so people buy less goods.
D. reduces the value of money in peoples' pockets, so people buy more goods.
Answer: B
You might also like to view...
Unemployment due to the location or skill requirements of job vacancies not matching the location or skills of the unemployed is called ________ unemployment
A) turnover B) mismatch C) cyclical D) natural
Which of the following would cause the nominal exchange rate to depreciate?
A) The real exchange rate appreciates. B) The domestic inflation rate increases. C) The foreign inflation rate increases. D) The government budget deficit increases.
Minimum wage laws contribute to structural unemployment by:
A. keeping wages below the market-clearing level. B. forcing unemployed workers to take the first job offered to them. C. allowing unemployed workers to search longer or less intensively for jobs. D. keeping wages above the market-clearing level.
Spot exchange can be inefficient in the presence of:
A. a complex contracting environment. B. opportunism. C. spot checks. D. None of the statements is correct.