Answer the following questions true (T) or false (F)
1. Hyperinflations occur because governments want to spend more than they raise in taxes, and they pay for the extra purchases by printing money or selling large quantities of government bonds to the central bank.
2. In the United States, businesses are not required to accept cash as payment for goods or services.
3. The quantity equation becomes the basis for a theory when we assume that velocity of money is constant.
1. TRUE
2. TRUE
3. TRUE
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The increased willingness of employers to hire strikebreakers, and the increased willingness of workers to cross picket lines, help explain why unions have grown more reluctant to strike
Indicate whether the statement is true or false
Which of the following best describes the main problem faced by farms in the long run?
A. Lagging technology has decreased the productivity of farmers and therefore resulted in low farm prices and incomes. B. The highly inelastic nature of agricultural demand has caused small year-to-year fluctuations in farm output to result in highly unstable farm incomes. C. The supply of farm products has increased relative to the demand for them, and, because demand is inelastic, farm prices and incomes have therefore declined. D. The demand for farm products has increased relative to their supply, but the highly elastic nature of agricultural demand has caused these shifts to result in declining farm incomes.
An issue that proposals for international reform agree on is that
A) the IMF should intervene more in financial crises. B) there must be a lender of last resort. C) IMF quotas are currently set at an appropriate level. D) the Basel capital requirements for banks should be increased.
Trade in services such as information technology
A) is like other trade; it creates winners and losers, but the gains for national economies likely outweigh the costs. B) creates gains for India's economy, but national welfare losses for the countries that import these services. C) make it highly likely that information technology jobs will ultimately disappear in the industrialized countries. D) is not perceived as threatening by industrialized countries so is unlikely to lead to any protectionist sentiment or pressures in the way the manufacturing does.