If the average price level increases 10 percent per year, and the velocity of money is 2, then the:
A. inflation rate is 5 percent.
B. inflation rate is 2 percent.
C. inflation rate is 10 percent.
D. inflation rate is 20 percent.
Answer: C
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If a central bank engages in an unsterilized foreign-exchange intervention with the intention of raising the foreign-exchange value of its currency,
A) the central bank's holdings of international reserves will fall. B) the domestic money supply will rise. C) domestic interest rates will fall. D) it will buy foreign assets.
mixed-strategy Nash equilibrium is the outcome in which a player's ________ strategy is the best strategy for that player, taking as given the other player's ________ strategy.
A) mixed; mixed B) pure; pure C) pure; mixed D) mixed; pure
Marginal product of labor
A) is the derivative of the production function with respect to a one unit change in labor. B) is the derivative of the production function with respect to a one unit change in capital. C) is the derivative of the marginal cost curve. D) none of these choices.
Over the past 80 years, real GDP has
a. decreased in more years than it has increased b. increased dramatically c. increased slowly d. increased moderately e. been stable