When anticipated inflation occurs regularly, the degree of risk associated with investments in the economy
A. decreases.
B. remains stable.
C. falls to zero.
D. increases.
Answer: B
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The problem of currency mismatch of net external wealth can be mitigated by:
A) ensuring the creditor countries always denominate loans in U.S. dollars. B) promoting internal financial markets where foreign securities can be traded. C) restricting borrowing yet encouraging lending. D) piling up large stocks of foreign currency assets in central bank reserves and sovereign wealth funds.
The nominal gross domestic product (GDP) for a country was $1,000 in 2003 and $1,500 in 2004 . The GDP price index was 100 in 2003 and 150 in 2004 . Between 2003 and 2004, real GDP _____
a. increased by $500 b. increased by $333 c. increased by $50 d. remained the same e. decreased by $50
Imposing a tariff brings about: a. higher prices and revenues to domestic producers. b. lower sales and revenues to foreign producers
c. higher prices to domestic consumers. d. all of the above
The life-cycle pattern of income variation causes inequality in the distribution of annual income, but it does not necessarily represent