Contractual provisions based on indexing are also called
a. withdrawal clauses.
b. swap clauses.
c. escalator clauses.
d. averaging clauses.
c
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The table above shows three production methods to produce 100 automobiles per day. If the price of labor is $20 per unit and the price of capital is $100 per unit, which of the three methods is economically efficient?
A) Method A only B) Method B only C) Method C only D) All three methods are economically efficient.
Land is an example of a renewable resource
Indicate whether the statement is true or false
How might a budget deficit affect the balance of trade?
A) A budget deficit reduces interest rates, which reduces exchange rates and reduces the balance of trade. B) A budget deficit raises interest rates, which raises exchange rates and reduces the balance of trade. C) A budget deficit raises interest rates, which raises exchange rates and increases the balance of trade. D) A budget deficit reduces interest rates, which raises exchange rates and reduces the balance of trade.
Describe what the liquidity trap is. Explain how it can be problematic for monetary policymakers
What will be an ideal response?