According to the structural stagnation hypothesis, expansionary macro policy tends to lead to:
A. goods inflation.
B. goods deflation.
C. low exchange rates.
D. asset price inflation.
Answer: D
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What will be an ideal response?
The euro is said to be selling at a ________ if the spot dollar price is $1.18 and the nine-month forward rate is $1.16
A) forward discount B) forward premium C) forward spread D) none of the above
If the rate of increase in the price level exceeds the rate of increase in nominal GDP, real GDP declines
a. True b. False Indicate whether the statement is true or false
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