What causes inflation?
A. An increase in nominal GDP.
B. An increase in real interest rates.
C. An increase in the money supply.
D. An increase in real GDP.
Ans: C. An increase in the money supply.
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Answer the following statement(s) true (T) or false (F)
1. The Clean Air Interstate Rule (CAIR) included an annual SO2 trading program. 2. NOX contributes both to acid rain and to the formation of ground-level ozone. 3. Because NOX readily moves across state borders, a series of interstate collaborations formedover time to address the problem, but none established a trading program. 4. Two new NOX cap-and-trade programs were launched under the Clean Air Interstate Rule (CAIR). 5. RECLAIM is a California trading program that used trading credits in a regional market for sulfur oxide and nitrogen oxide.
A worker's stock of knowledge is known as
A) monetary capital. B) human capital. C) physical capital. D) financial capital.
The wealth effect and the interest rate effect are changes in the price level that:
a. bring about a movement along the aggregate demand curve. b. lead to a shift of the demand curve for a particular good. c. result in a shift of the aggregate supply curve. d. help explain the vertical shape of the long-run aggregate supply curve. e. cause a movement along the aggregate supply curve.
If depreciation (consumption of fixed capital) exceeds gross domestic investment, we can conclude that:
A. nominal GDP is rising but real GDP is declining. B. net investment is negative. C. the economy is importing more than it exports. D. the economy's production capacity is expanding.