If inflation in country A exceeds inflation in country B, purchasing power parity implies that:
A. the inflation rate in country B will rise to match the inflation rate in country A.
B. the inflation rate in country A will fall to match the inflation rate in country B.
C. the currency of country A will depreciate relative to the currency of country B.
D. the currency of country B should depreciate relative to the currency of country A.
Answer: C
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The revenue that a government raises by printing money is called
A) seignorage. B) monetary revenue. C) currency credit. D) currency inflation.
The best known financial auction market is the
A) New York Stock Exchange. B) American Stock Exchange. C) Pacific Stock Exchange. D) Nasdaq.
From 1960 to about 1980 the net capital outflow of the U.S. was typically
a. small but always positive. b. small and sometimes negative and sometimes positive. c. large and positive. d. large but sometimes negative and sometimes positive.
The argument that concentration of market power enhances research and development efforts may be weak because:
A.) Monopolies cannot afford basic research. B.) No one has attempted to gather any empirical evidence. C.) A monopoly may have no clear incentive to pursue new research and development. D.) No existing monopoly has a research and development program.