High expected inflation leads to ________ increases in wages and costs and to ________ actual inflation.
A. small; low
B. large; low
C. small; high
D. large; high
Answer: D
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U.S. net export spending rises when
A) the inflation rate is higher in the United States relative to other countries. B) the value of the U.S. dollar increases relative to other currencies. C) the price level in the United States rises relative to the price level in other countries. D) the growth rate of U.S. GDP is slower than the growth rate of GDP in other countries.
Countervailing duty cases involve allegations of
A) foreign monopoly pricing. B) foreign export subsidies. C) foreign barriers to U.S. exports. D) All of the above.
The price elasticity of demand for a vertical demand curve is:
A. perfectly elastic. B. perfectly inelastic. C. unitary elastic. D. elastic.
Keith is indifferent between canned soup and fresh soup. In the figure above, Keith's indifference curves are represented by I1, I2, I3, and I4 curves. Which of the following choices Keith cannot afford?
A) 3 canned soups and 2 fresh soups B) 2 canned soups and 1 fresh soup C) only 4 canned soups D) only 2 fresh soups