From 1970 to 1998 the U.S. dollar
a. gained value compared to the German mark because inflation was higher in Germany.
b. gained value compared to the German mark because inflation was lower in Germany.
c. lost value compared to the German mark because inflation was higher in Germany.
d. lost value compared to the German mark because inflation was lower in Germany.
d
You might also like to view...
Only when budget deficits are financed by money creation does the increased government spending lead to ________ in the ________
A) a decrease; monetary base B) an increase; monetary base C) a decrease; money multiplier D) an increase; money multiplier
You can spend $10 for lunch and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the price for cheeseburger has increased from $5 to $6, so you decide to purchase just one cheeseburger. This is best described as:
A. an increase in the buyer's reservation price. B. a decrease in the buyer's reservation price. C. the substitution effect of a price change. D. the income effect of a price change.
The government has bailed out homeowners who are in danger of foreclosure. Furthermore, future homeowners may deduce that the government will again bail them out in the case of future economic turmoil. The government inadvertently has created what is known as:
A. moral hazard. B. herding. C. deleveraging. D. the law of diminishing control.
The demand curve facing a single-price monopoly
A) lies below the marginal revenue curve. B) lies above the marginal revenue curve. C) is the same as only the marginal revenue curve. D) is the same as only the marginal cost curve. E) is the same as both the marginal revenue curve and the marginal cost curve.