The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.
Answer: B
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Import quotas are less damaging to an economy than are tariffs
Indicate whether the statement is true or false
The "invisible hand" influences market behavior through trade
a. True b. False Indicate whether the statement is true or false
Which of the following is not correct?
a. By saving a larger portion of its GDP, a country can raise its output per worker. b. Savers supply their money to the financial system with the expectation that they will get it back with a return at a later date. c. Financial intermediaries are the only type of financial institution. d. The financial system helps match people's saving with other people's borrowing.
A currency sells at a forward premium when the forward rate is greater than the spot rate.
a. true b. false