When there is inflation, the number of dollars needed to buy a representative basket of goods
a. increases, and so the value of money rises.
b. increases, and so the value of money falls.
c. decreases, and so the value of money rises.
d. decreases, and so the value of money falls
b
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Refer to Exhibit 7-1. What is the value of gross domestic product?
A. $6,062 B. $329 C. $349 D. $319
For each pair of goods, explain which is more elastic: toothpicks vs. cars; electricity vs. yachts; IBM computers vs. Apple computers.
What will be an ideal response?
The balance of payments improves
A) when there is an exchange rate appreciation. B) when there is an exchange rate depreciation. C) when the interest rate rises. D) never.
During the last half of 2008 and the first half of 2009, the congress passed and the President signed two bills totaling about _______________ in an attempt to avert the Great Recession.
A. $700 billion B. $800 billion C. nearly $1.5 trillion D. more than $2.0 trillion