Suppose an economy produces only smart phones. If the price level falls, the value of currency
a. rises, because one unit of currency buys more smart phones. This is called deflation.
b. rises, because one unit of currency buys more smart phones. This is called inflation.
c. falls, because one unit of currency buys fewer smart phones. This is called deflation.
d. falls, because one unit of currency buys fewer smart phones. This is called inflation.
a
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In the United States, out-of-pocket spending on health care is about ________ percent of all health care spending
A) 2 B) 12 C) 33 D) 48
Monetary policy refers to the government's
A) decisions on how much money to spend. B) decisions on how much money to collect in taxes. C) plans for retiring the national debt. D) management of the money supply and interest rates to achieve macroeconomic objectives.
The very low interest rates following the financial crisis of 2007-2009 resulted in:
A) many people moving their funds from CDs and money market accounts to checking accounts in order to have more liquidity without sacrificing much interest B) funds being transferred from checking accounts to time deposits C) further declines in checking accounts that began in the early 1970s D) people switching their funds from checking deposits to CDs in the pursuit of higher interest rates
The life-cycle pattern of income variation causes inequality in the distribution of annual income, but it does not necessarily represent