Currency devaluations hurt
a. Consumers but help suppliers
b. Suppliers
c. Suppliers but help consumers
d. None of the above
a
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Which of the following developments will most likely lead to an increase in the velocity of money?
a. a decrease in the expected inflation rate b. an increase in money interest rates c. a sharp decline in using credit cards d. a decrease in real income
In monopolistic competition, in the long run customers pay a price that is
A) less than the minimum ATC. B) more than the minimum ATC. C) equal to both the minimum ATC and the minimum AVC. D) equal to the minimum ATC, but not equal to the minimum AVC.
How does a rise in real income affect aggregate demand?
A) Y ? implies Yd ? implies Im ? implies CA ? implies AD ?, but Y ? implies Yd ? implies C ? implies AD ? by more. B) Y ? implies Yd ? implies Im ? implies CA ? implies AD ?, but Y ? implies Yd ? implies C ? implies AD ? by more. C) Y ? implies Yd ? implies Im ? implies CA ? implies AD ?, and Y ? implies Yd ? implies C ? implies AD ?. D) Y ? implies Yd ? implies Im ? implies CA ? implies AD ?, but Y ? implies Yd ? implies C ? implies AD ? by less. E) Y ? implies Yd ? implies Im ? implies CA ? implies AD ?, but Y ? implies Yd ? implies C ? implies AD ? by less.
The life cycle hypothesis explains the long run constancy of the savings rate and short run variability of savings rate provided
A) the proportions of working and retired people are constant in each historical era. B) the saving behavior of each age group does not change from generation to generation. C) A and B are both required to explain the apparent contradiction. D) Friedman's PIH is in error.