In an open economy with few capital restrictions and substantial import-export trade, a rise in interest rates and a decline in the producer price index of inflation will
a. raise the value of the currency
b. lower the nominal interest rate
c. increase the volume of trading in the foreign exchange market
d. lower the trade-weighted exchange rate
e. increase consumer inflation.
a
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Congress passed the Freedom to Farm Act in 1996. What was the purpose of this Act?
A) to phase out price floors and return to a free market in agriculture B) to grant free land to farmers in order to produce crops that were particularly scarce C) to phase out the use of price ceilings in agricultural markets D) to encourage more people to become farmers
If aggregate expenditures exceed GDP in a private closed economy:
A. leakages will exceed injections.
B. planned investment will exceed saving.
C. unplanned investment in inventories will occur.
D. saving will exceed planned investment.
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.
A consumer price index that has had the impact of having food and energy prices removed is the
A. CPI. B. core CPI. C. PCE. D. Producer Price Index.