An economy experiences real growth over time with stable aggregate demand. This would likely result in
A. secular inflation.
B. increasing prices.
C. decreasing prices.
D. increased unemployment.
Answer: C
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Explain how a government budget deficit might crowd out private investment
What will be an ideal response?
Which of the following statements is TRUE about a vehicle currency?
A) It is widely used to denominate contracts made by parties who reside in the country that issues the vehicle currency. B) The dollar is sometimes called a vehicle currency because of its pivotal role in many foreign exchange deals. C) There is much skepticism that the euro will ever evolve into a vehicle currency on par with the dollar. D) The pound sterling, once second only to the dollar as a key international currency, is beginning to rise in importance. E) Vehicle currencies include nondeliverable currencies like the renminbi.
Why do countries impose protection even if it lowers economic welfare? Explain fully
What will be an ideal response?
Evidence indicates that the average economic profits of invention are
a. well above zero. b. slightly above zero. c. equal to zero. d. less than zero.