Which of the following is true of expected inflation?
a. It increases the efficiency of the economy.
b. It is more of a problem than unexpected inflation.
c. It results in lower prices over time as people make adjustments.
d. It is not a major problem if people can make the right interest rate and income level adjustments.
e. It is necessarily tied to a decline in purchasing power.
d
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Last week, six Swedish kronor could purchase one U.S. dollar. This week, it takes eight Swedish kronor to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the United States to Sweden and ________ U.S
aggregate demand. A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease
If the supply curve of labor facing the firm is upward sloping, the wage rate and the MLC are identical
Indicate whether the statement is true or false
The exchange rate changed from € 2.5/ $ to € 2.0/ $. Therefore:
a. The euro appreciated by 25% and the dollar depreciated by 20%. b. The euro depreciated by 25% and the dollar appreciated by 20%. c. The euro appreciated by 20% and the dollar depreciated by 25%. d. The euro depreciated by 20% and the dollar appreciated by 25%. e. The euro appreciated by 20% and the dollar depreciated by 20%.
Adam Smith used a pin factory to demonstrate
A. the advantages of economies of scale. B. diseconomies of scale. C. the long-run average cost curve. D. the advantage of being established.