Suppose that the latest Consumer Price Index (CPI) release shows a higher inflation rate in the U.S. than was expected. Everything else held constant, the release of the CPI report would immediately cause the demand for U.S
assets to ________ and the U.S. dollar would ________. A) increase; appreciate
B) increase; depreciate
C) decrease; appreciate
D) decrease; depreciate
D
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What is job rationing and how does it relate to unemployment? What factors can lead to job rationing? Briefly explain these factors
What will be an ideal response?
The money-creating ability of the banking system may be lowered by:
a. a decrease in the cash balances that people wish to hold. b. a fall in the overall rate of inflation. c. an increase in the excess reserves. d. an increase in total deposits. e. an increase in the reserve requirement.
The ability to shift a tax burden depends on the relative elasticities of demand and supply for the taxed commodity.
Answer the following statement true (T) or false (F)
Each firm in perfect competition:
A. follows the pricing decisions of other firms. B. follows the output of other firms. C. follows the reactions of competitors. D. sets quantity based on market price.