If unexpected inflation is good for borrowers, unexpected deflation is good for
A. governments.
B. businesses.
C. borrowersas well.
D. lenders.
Answer: D
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It is often asserted that the United States no longer manufactures anything, and that instead it imports manufactured goods from countries like China. Critically evaluate this claim.
What will be an ideal response?
C + I + G + NX equals:
A. the output gap. B. aggregate expenditure. C. potential GDP. D. the income-expenditure multiplier.
The expenditure-based method of national accounting ________
A) only tracks the purchase of goods and services by firms B) does not track the purchase of investment goods by firms and households C) only tracks the purchase of goods and services by the government D) tracks the purchase of all goods by households, firms and the government
With a monetary growth rule as proposed by the monetarists, during a recession the rate of growth of the money supply would
A) not change. B) increase. C) decrease. D) decrease or increase depending on economic conditions.