Suppose the price levels in an economy in four successive years are 100, 120, 133, and 140 . Which of the following is true in such a case?
a. The economy is experiencing hyperinflation
b. The economy is experiencing deflation.
c. The economy is experiencing inflation.
d. The economy is experiencing increasing inflation.
e. The economy is experiencing disinflation.
c
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Which of the following is the most accurate description of events when monetary authorities increase the size of commercial banks' excess reserves?
A. A rise in interest rates increases the money supply, causing a decrease in investment spending, output, and employment. B. The money supply is decreased, which increases the interest rate, and causes investment spending, output, and employment to decrease. C. A fall in interest rates decreases the money supply, causing an increase in investment spending, output, and employment. D. The money supply is increased, which decreases the interest rate and causes investment spending, output, and employment to increase.
In 2013, which of the following countries had the largest current account balance?
a. Germany b. France c. United States d. Japan
Suppose you start your own company making T-shirts that commemorate campus sporting events. An example of the resource capital would be
a. the factory you created in a building you are leasing b. your time and effort used to produce T-shirts c. the entire campus, since the demand for T-shirts is obtained from campus students d. the athletic facilities, since the athletic teams generate sporting events advertised on the T-shirts e. your creative designs used to commemorate different sporting events
Assume that your roommate is very messy. Suppose she gets a $25 benefit from being messy but imposes a $50 cost on you. The Coase theorem would suggest that an efficient solution would be for you to
a. pay your roommate at least $25 but no more than $50 to clean up after herself. b. pay your roommate at least $51 to clean up after herself. c. charge your roommate at least $25 to have you clean up after her. d. charge your roommate at least $50 but no more than $100 to keep you from complaining about the mess.