Consumption spending is:
A. negatively related to the overall price level.
B. positively related to the overall price level.
C. not correlated with the overall price level.
D. equal to the overall price level.
Answer: A
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List the three coordination decisions made by every economy.
A. Where? When? How? B. How? What? To whom? C. Why? Where? What? D. When? To Whom? Where?
A public utility would be an example of
A. a natural monopoly. B. an unnatural monopoly. C. an unregulated private monopoly. D. a competitive monopoly.
In the extended version of the circular flow model,
a. resources flow from the government to firms b. taxes flow from foreign economies to the government c. goods and services flow from households to foreign economies d. resources flow from households to firms e. resource payments flow from households to the government
A fixed exchange rate is an exchange rate whose value:
A. reflects the comparative advantage of the home country versus other foreign countries. B. is established annually by the International Monetary Fund. C. varies according to supply and demand for the currency in the foreign exchange market. D. is set by official government policy.