If the quality of items improves over time, the CPI ________ inflation
a. overstates
b. understates
c. equals
d. approximates
a
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Limits on the flow of foreign exchange and financial investment across countries are called
A) currency restrictions. B) credit constraints. C) fixed exchange rates. D) capital controls.
Private capital flows in the form of both direct and portfolio investment began to return to Latin America after 1989, effectively marking the end of the Lost Decade
Indicate whether the statement is true or false
Economic theory suggests that college graduates receive higher wages than those with only a high school education because
a. the supply of high school graduates is small relative to the demand for their labor. b. college graduates must be paid higher wages because their educational costs were higher. c. college graduates are more productive. d. college graduates have formed stronger unions.
Existing loopholes erode the progressivity of the U.S. tax system.
Answer the following statement true (T) or false (F)