The use of foreign money instead of domestic money when the domestic economy has a high rate of inflation is called _____
a. currency depreciation
b. currency substitution
c. capital flight
d. currency devaluation
e. currency trade
b
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Supply-side inflation is caused by
A) an increase in aggregate demand and no change in aggregate supply. B) a decrease in aggregate supply and no change in aggregate demand. C) a decrease in aggregate demand and no change in aggregate supply. D) an increase in aggregate supply and no change in aggregate demand.
Is measuring the effect of discrimination on wages relatively easy or relatively difficult? Explain?
The aggregate supply curve normally
A. slopes downward and to the right due to higher resource prices. B. has a horizontal slope equal to zero. C. is very steep in the lower portion and flatter in the upper portion. D. slopes upward to the right due to short-run fixed costs of production.
The decision about how much money to hold is an application of the:
A. principle of increasing opportunity cost. B. cost-benefit principle. C. principle of comparative advantage. D. scarcity principle.