In order to keep the real wage rate constant, the
A) inflation rate must be exactly one half of the expected inflation rate.
B) money wage rate must increase by the same amount as the inflation rate.
C) money wage rate must increase when the price level falls.
D) money wage rate must decrease by the same amount as the inflation rate.
E) nominal interest rate must be equal to the inflation rate.
B
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Global capital markets have which of the following characteristics
A) ease of entry. B) many sellers. C) very competitive. D) all of these choices characterize this market.
Market prices are
a. conveyors of information. b. determined by the interactions of supply and demand in voluntary exchange. c. indicators of the relative scarcity of resources and products. d. all of the above.
To put government debt into perspective, it should be:
a. Put on a per capita basis b. Realized that if the debt is not eventually brought to zero (i.e., repaid in full and with no outstanding obligations), the nation could default on its loans. c. Looked upon as the problem of future generations and not a concern of the current generation. d. Realized that the debt is a liability of a "government" and, therefore, not really a liability of the nation.
Under President Eisenhower the problem of inflation.
A. got a lot worse. B. got a little worse. C. got a little better. D. got a lot better.