A dollar-amount increase that has not been adjusted for inflation is called
A. a real increase.
B. an inflationary increase.
C. a net increase.
D. a nominal increase.
Answer: D
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The higher the expected inflation rate in a country, the lower is the nominal interest rate in that country
Indicate whether the statement is true or false
Economic growth is likely to be faster when
a. higher tax rates are imposed on high income individuals in order to provide greater cash payments to the poor.
b. domestic markets are opened to foreign sellers and foreign investors.
c. the supply of money is increased rapidly so individuals have more money to spend.
d. dramatic changes in political and legal institutions occur often.
Under a gold standard, if the U.S. has a trade deficit with Japan,
A. the U.S. would receive gold from Japan, the Japanese money supply would decline, and the price level would fall in Japan. B. the U.S. would receive gold from Japan, the U.S. money supply would increase, and the U.S. price level would rise. C. the U.S. would lose gold to Japan, the U.S. money supply would increase, and the price level in the U.S. would increase. D. the U.S. would lose gold to Japan, the U.S. money supply would decline, and the U.S. price level would fall.
Refer to the table. Exports might be ____ and imports ____.
A. $10; $5
B. $10; $0
C. $0; $5
D. $5; 10