Which of the following states that the country with the higher interest rate should have the higher inflation?
A) the Fisher Effect
B) the International Fisher Effect
C) the Interest Rate Inflation Theory
D) the Forward Rate Theory
A) the Fisher Effect
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According to proponents of an environmentally-adjusted measure of a nation’s macroeconomic performance
a. GDP fails to properly capture the effects of environmental pollution b. GDP appropriately accounts for natural resource depletion c. the international community does not support environmental accounting d. the guidelines outlined in the SEEA of 2003 are meaningless
At any quantity, the price given by the supply curve shows the cost of the lowest-cost seller
a. True b. False Indicate whether the statement is true or false
The primary emphasis in macroeconomics is on:
A) how firms set prices. B) aggregates in the economy. C) marginal analysis and normative economics. D) international trade and environmental economics.
In the following equation, what does the symbol ? denote?
AE ? C + I + G + (X – M) a. The equation is an estimate. b. The equation is absolute. c. The equation is just a suggestion. d. The equation is just a definition.