Deficits financed by borrowed money lead to inflation, and in a fixed or crawling peg exchange rate system, this leads to the real exchange rate being undervalued
Indicate whether the statement is true or false
FALSE
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Physical capital is:
A. the stock of equipment and structures that allow for the production of goods and services. B. the skills a human being acquires that enhances the available stock of equipment. C. the set of skills, knowledge, experience, and talent that determine the productivity of workers. D. All of these describe physical capital.
Milly Miser removes $250,000 from her mattress and opens a checking account. This single transaction immediately increases the money supply by
a. $250,000. b. $50,000. c. $0. d. ?$250,000.
Describe the four legal procedures available to U.S. firms to seek protection from foreign competition. What circumstances would warrant a request under each? How frequently is each used? What would be the result if the firm won?
What will be an ideal response?
If disposable income increases from $912 to $927 billion and MPC = 0.6, then consumption will increase by
A. $56 billion. B. $6 billion. C. $9 billion. D. $54 billion.