An increase in government spending is more likely to lead to higher inflation when
A. real GDP is above potential GDP.
B. the business cycle is near the trough.
C. the unemployment rate is above the natural rate.
D. the economy is in a recession.
Answer: A
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The international debt crisis of early 1982 was precipitated when ________ could not pay its international debts
A) Russia B) Mexico C) Brazil D) Malaysia E) China
Since 1980, changes in the nature of both the M1 and M2 money supply have
a. increased their reliability as indicators of monetary policy. b. decreased their reliability as indicators of monetary policy. c. had no effect on their reliability as indicators of monetary policy. d. decreased their reliability as indicators of fiscal policy.
When regulations interfere with exchange and limit entry into various businesses and occupations, they will
a. help a country achieve more rapid economic growth. b. promote more efficient use of investment capital by entrepreneurs. c. retard economic progress. d. increase the profits of business firms.
18% nominal rate expected inflation rate at 12% what is real interest rate?
What will be an ideal response?