Countries that experience very high rates of inflation may also have
A) balanced budgets.
B) rapidly growing money supplies.
C) falling money supplies.
D) constant money supplies.
B
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Why might a nation seek to maintain a pegged exchange rate?
A) It makes business planning easier for firms involved in the global economy. B) It removes the need to intervene in the foreign exchange market. C) It ensures that the exchange rate will remain at its equilibrium. D) It makes their currency more attractive on the foreign exchange market.
The "investment" component of aggregate demand will include all of the following except
a. expenditures of business firms on new plants. b. expenditures of business firms on new equipment. c. resales of existing physical assets. d. household spending on new homes.
How might unemployment insurance increase the efficiency of labor markets and the economy? How might it reduce the efficiency of labor markets and the economy?
What will be an ideal response?
If marginal costs rises above average costs, average costs must
a. Be increasing b. Be decreasing c. Stay constant d. None of the above