Suppose an economy had an inflation rate of 7 percent last year. This has decreased to 6 percent this year. This means that the economy is:
a. suffering from hyperinflation.
b. experiencing deflation.
c. experiencing disinflation
d. experiencing a wage-price spiral.
e. experiencing a decrease in real wage.
c
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International economics can be divided into two broad sub-fields
A) macro and micro. B) developed and less developed. C) monetary and barter. D) international trade and international money. E) static and dynamic.
A good that is both excludable and rivalrous is a(n):
a. public good. b. club good. c. private good. d. inferior good. e. necessary good.
Economic problems are made manageable by stripping away some of the unnecessary details.
Answer the following statement true (T) or false (F)
If Matt Taylor gets his $800 loan from the Paris First National Bank in cash rather than in the form of a new checkable deposit, the:
A. Paris First National Bank will get $800 in new reserves. B. Paris First National Bank will not get $800 in new reserves. C. assets of the Paris First National Bank will increase by $800. D. assets of the Paris First National Bank will decease by $88.