Which of the following about inflation is true?
a. High and variable rates of inflation will be easy for decision makers to forecast accurately.
b. Unanticipated inflation is an increase in the general level of prices that was not expected by most decision makers.
c. In contrast with unanticipated inflation, anticipated inflation implies that the increase in the general level of prices was expected by borrowers but not lenders.
d. Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.
B
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Conducting the nation's monetary policy is the duty of the
A) Department of Commerce. B) U.S. Treasury department. C) Federal Reserve System. D) Federation of Banks. E) Federal Bank Supervisor.
In a society with market failure, there
a. is no pollution b. are no public goods c. is an inefficient allocation of resources d. are no markets e. is no need for a government
Michael values a stainless steel refrigerator for his new house at $3,500, but he succeeds in buying one for $3,000 . Michael's willingness to pay is
a. $500. b. $3,000. c. $3,500. d. $6,500.
Which of the following events would NOT cause India to shift away from exporting call center services to the United States?
A. The development of automated software that handles a large fraction of customer questions and sales orders B. An increase in the number of Chinese who speak English well C. An increase in the value of the dollar against the rupee D. An increase in the other employment opportunities available to English-speaking college graduates in India