In the dynamic aggregated demand and aggregate supply model, inflation occurs if
A) SRAS shifts faster than AD.
B) AD shifts slower than SRAS.
C) LRAS shifts faster than AD.
D) AD shifts faster than SRAS.
D
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If the Japanese government enters the foreign exchange market and purchases yen to maintain a specific exchange rate with the dollar, the dollar will ________ and the yen will ________
A) depreciate; depreciate B) depreciate; appreciate C) appreciate; depreciate D) appreciate; appreciate
Rural-urban migrants differ from the rest of the rural population in that they are more likely to be
(a) well educated (b) poor (c) female (d) all of the above
During hyperinflation, exploding inflation causes real money demand to
A) fall over time, and this additional monetary change makes money prices rise even more quickly than the money supply itself rises. B) increase over time, and this additional monetary change makes money prices rise even more quickly than the money supply itself rises. C) fall over time, and this additional monetary change makes money prices decrease even more quickly than the money supply itself rises. D) increase over time, and this additional monetary change makes money prices decrease even more quickly than the money supply itself rises. E) fall over time, and this additional monetary change makes money prices decrease even less quickly than the money supply itself rises.
How did CDS' contribute to the financial crisis of 2007-2009?
What will be an ideal response?