What is hyperinflation?
What will be an ideal response?
Hyperinflation refers to an inflation rate which exceeds 50 percent per month.
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When using pollution charges to improve efficiency in a market with an external cost, regulators attempt to set the pollution charge equal to the
A) marginal social cost of production. B) marginal external cost of production. C) marginal private cost of production. D) marginal private benefit of consumption. E) marginal external benefit minus the marginal external cost.
How does expansionary monetary policy affect a nation's exchange rate?
What will be an ideal response?
Fiscal policy may end up being destabilizing to an economy because
A) there is never a long enough time lag. B) the economy is almost always at full employment. C) the President may have different goals than Congress. D) various time lags associated with fiscal policy cause the policy changes to take effect too late to solve the problem it was supposed to solve.
All other things equal, GDP will rise if:
A. imports rise. B. exports fall. C. durable goods consumption rises. D. military spending falls.