If inflation is higher in the home market, what is expected to happen to the real value of the home currency as time passes?
What will be an ideal response?
Appreciates
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As more of an activity is undertaken, it is reasonable to assume that
a. the total benefits will decline. b. the marginal benefits will decline. c. the fixed costs will decline. d. the marginal benefits will increase.
The figure illustrates the market for pens. The equilibrium quantity is
A) between 400 and 600 pens, but it is impossible to be precise. B) 5 pens a month. C) 2 pens a month. D) 500 pens a month.
Gordon recommends that government macroeconomic policymakers focus on
A) reducing inflation to zero. B) creating a national job finding service to reduce frictional unemployment to near zero. C) creating "enterprise zones" to move jobs to areas of concentrated unemployment. D) programs to match more closely the job skills of the unemployed to those of job vacancies.
The increase in redistributive programs as a percentage of the government's budget has led to _____
a. a greater potential payoff for special interests b. a welfare bureaucracy dependent upon the existence of the redistributive program c. a concomitant rise in private charity d. a and b e. b and c