An increase in a country's rate of inflation is apt to
A) reduce its imports and improve its trade balance.
B) lower its nominal rate of interest and encourage an inflow of capital.
C) worsen its balance of trade and balance of payments.
D) decrease demand for the country's currency.
C
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An increase in the price of Kellogg's breakfast cereal is likely to shift the demand curve for cereal manufactured by Malt-O-Meal to the right
Indicate whether the statement is true or false
A person's tendency to smoke a cigarette after promising himself that he will quit is an example of the behavioral economics insight that people are inconsistent over time
a. True b. False Indicate whether the statement is true or false
A person removes the anti-pollution devices on his automobile. An external cost associated with this is
A) the feeling of guilt the person feels for violating the law. B) the ticket he gets when a highway patrol officer pulls him over. C) the man's neighbor washes his car more often because of increasing smog. D) the man buys less gasoline, reducing the income of local gas stations.
In a perfectly competitive market, there are ________ buyers and ________ sellers
A) many; few B) few; many C) many; many D) few; few