In countries with low inflation:
A. M2 growth is a poor forecaster of inflation.
B. M2 growth is a very strong forecaster of inflation.
C. there tends to be a greater reliance on checks than electronic payments.
D. money stocks are a larger percentage of GDP.
Answer: A
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Who would be least inclined to engage in "feel good" foreign projects, which contribute minimal benefits to the poor but look impressive to outside observers?
A) Private investors B) Foreign governments C) International aid agencies D) The World Bank
Which of the following statements concerning efficiency is correct?
A. If a toll road is heavily used so that traffic movement is slowed, the price per vehicle should be reduced since the road is generating more revenue. B. Economists advocate high prices for abundant resources and low prices for scarce resources. C. If a toll road is heavily used and traffic movement is difficult, the price per vehicle should be increased to shift some traffic to less-crowded roads. D. All of these options are desirable in promoting efficient use of scarce road space.
Certain behavior associated with expected inflation can
A. allow borrowers to pay with more valuable dollars. B. allow lenders to collect with more valuable dollars. C. reduce inflation rates overall. D. actually increase the overall rate of inflation.
Which of the following is not true about advertising?
A. It raises the price of goods and services. B. It creates brand loyalty. C. It results in efficient allocation of resources. D. It is a form of nonprice competition.