Fixed exchange rates give countries too much freedom over their monetary policies, thereby threatening higher rates of inflation
a. True
b. False
Indicate whether the statement is true or false
False
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Most economists think changes in which type of unemployment affects inflation?
A) frictional unemployment B) cyclical unemployment C) structural unemployment D) natural rate of unemployment
If the price of gasoline increases from $2.50 per gallon to $3
00 per gallon and the quantity demanded goes down from 120 million gallons per week to 115 million gallons per week, the absolute value of price elasticity of demand in that price range is approximately A) 0.23. B) 4.35. C) 0.93. D) 2.34.
Both short and long-run aggregate supply curves can shift to the right if entrepreneurial activities lower costs of production and expand what can be produced
a. True b. False Indicate whether the statement is true or false
Which of the following is a reason why an American would demand British pounds?
a. To purchase British real estate b. To purchase Japanese semiconductors c. To purchase French government bonds d. To purchase stocks on the New York Stock Exchange e. To purchase a ticket to see a British film in the U.S.