A reduction in a country's rate of inflation should
A. increase its exports.
B. lead to a negative trade balance.
C. increase its imports.
D. lead to an outflow of SDRs.
Answer: A
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The two factors that determine the size of the multiplier are the
A. unemployment rate and the inflation rate. B. marginal propensity to consume and the amount of overseas leakage. C. amount of imports and the amount of exports. D. amount of spending and the number of jobs.
In commercial societies, the plans of tasks and benefits is negotiated by the affected parties primarily
What will be an ideal response?
When supply increases and the supply curve shifts to the right, equilibrium price ________ and equilibrium quantity ________.
A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases
A reason why the CPI overstates the cost of living is it
A. makes no attempt to ascertain what average people buy. B. makes no attempt to control for substitution to cheaper goods. C. makes no attempt to update the market basket. D. only measures the effects of inflation on the poor.