Deflation is a:
A. steady, unchanging aggregate price level.
B. sustained fall in the aggregate price level.
C. steady fall in the exchange rate.
D. sustained increase in the aggregate price level.
Answer: B
You might also like to view...
Why does an increase in supply lead to lower prices?
What will be an ideal response?
If the Fed buys a $100,000 government security from a bank when the desired reserve ratio is 10 percent and the currency drain ratio is 50 percent, the bank can loan a maximum of
A) $90,000. B) $100,000. C) $60,000. D) $40,000. E) $50,000.
Suppose that U.S. inflation is 3 percent and Turkish inflation is 70 percent. The effect of this discrepancy on the foreign exchange market is that
A) the Turkish currency will depreciate. B) the dollar will depreciate. C) it is impossible for interest rate parity to hold. D) the Turkish currency will appreciate.
The measure of the benefit you get from consuming the next cup of coffee is your
A) marginal utility of coffee. B) total utility from coffee. C) total utility per dollar spent on coffee. D) total utility from coffee when you are at your consumer equilibrium.