Because everybody lives under uncertainty, everybody is
A) less than perfectly informed.
B) ignorant of something.
C) a speculator.
D) all of the above.
E) none of the above.
D
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Suppose the United States is experiencing a balance of payments surplus. To prevent the exchange rate from appreciating, the U.S. Treasury must
A) sell dollars and buy foreign currency. B) sell both dollars and foreign currency. C) buy both dollars and foreign currency. D) sell foreign currency and buy dollars.
Rent and car payments are examples of:
a. Variable expenses b. Fixed expenses c. Net worth expenses d. Assets
If the prices received by farmers increased and the prices paid by farmers also increased, the parity ratio:
A. will necessarily be unchanged. B. may either increase or decrease. C. will necessarily increase. D. will necessarily decline.
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.