In the 1990s, inflation in many Latin American countries fell to about 10 to 15 percent per year, compared to previous rates of up to 1,000 percent a year in the 1980s. You would expect that as this occurred, the value of many Latin American currencies would:
A. have fallen more rapidly.
B. not be affected.
C. have fallen less rapidly.
D. move unpredictably.
Answer: C
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At a given price level, a decrease in consumer credit will shift the aggregate demand curve:
A) rightward. B) leftward. C) both. D) none of the above.
The White House's deficit commission has proposed several ways for the government to reduce the federal budget deficit, including raising the retirement age for Social Security
Other things equal, raising the retirement age for Social Security would tend to ________ the supply of labor and ________ the equilibrium wage rate. A) increase; raise B) increase; lower C) decrease; raise D) decrease; lower
The opportunity cost doctrine suggests that which of the following are not costs of government educational programs? a. The wages of teachers
b. The foregone earnings of participants. c. Stipends paid to participants. d. Materials used by students.
The calculation of the responsiveness of suppliers to changing prices is represented by
a. cross elasticity b. supply elasticity c. the supply coefficient d. long-run supply e. market-day supply