If households and businesses correctly anticipate the inflation rate, the unemployment rate
A. will be the cyclical rate of unemployment.
B. will be inversely related to the expected inflation rate.
C. will be the natural rate of unemployment.
D. will be positively related to the expected inflation rate.
Answer: C
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The law of one price states that
A) most countries require that all entering goods have the same price. B) most countries require that all exported goods have the same price. C) identical goods should have the same price anywhere in the world. D) most countries require that the price of a good not be changed once it is already in a store and available for sale.
The direct cause of the hyperinflation that plagued Zimbabwe in the 2000s is ________
A) printing of too much money by the central bank B) government expenditures greatly above revenues C) outlawing of price increases on many commodities D) allowing the use of foreign currencies E) the issuance of a $100 billion bank note
The Telecommunications Act of 1996 brought financial well-being to telecommunications firms
Indicate whether the statement is true or false
Drinking a can of cola gives Richard 20 utils of satisfaction. How many additional utils would you expect Richard would get from drinking a second can of cola?
(a) 20 utils. (b) Less than 20 utils. (c) More than 20 utils. (d) 40 utils.