If you observe that the dollar is appreciating because of a permanent change in the U.S. monetary supply, then the money supply must have:
a. fallen.
b. stayed the same.
c. risen.
d. Not enough information is provided to answer the question.
Ans: d. Not enough information is provided to answer the question.
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Imposing a tax on sales of a product
A) shifts the market demand curve for the product. B) shifts the market supply curve for the product. C) shifts both the market supply and demand curve for the product. D) has no effect on either the market demand or the market supply curve for the product.
Why is indexing not commonly adopted in spite of the fact that it eliminates most of the wealth transfers associated with unexpected inflation?
If real interest rates were 6% in country A and 4% in country B, the real interest rate in both countries will move toward 5%
a. True b. False Indicate whether the statement is true or false
The convergence hypothesis suggests that poor countries may close the income gap with rich countries
a. True b. False Indicate whether the statement is true or false