The domestic currency is said to be ________ if it has appreciated at a lower rate than the difference between the domestic inflation rate and the higher foreign inflation rate
A) undervalued
B) overvalued
C) appreciated
D) risky
A
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If autonomous consumption is greater than zero and the marginal propensity to consume is greater than zero, but less than one, the consumption function will first be above and then below the 45 degree line
a. True b. False Indicate whether the statement is true or false
Which of the following government actions can hinder the economic development of a country?
A. It inhibits the growth of the financial and banking sector. B. It implements policies that increase inflation rates in a country. C. It adopts policies that effectively tax exports. D. All of these are correct.
People's willingness to buy the PC or Mac format of computer software depends on how popular the software format is among other consumers. This is an example of
A) a cartel. B) an opportunity cost. C) a network effect. D) the prisoners' dilemma.
The accounting framework used in measuring current economic activity is called
A) the U.S. expenditure accounts. B) the national income accounts. C) the flow of funds accounts. D) the balance of payments accounts.