If Americans buy 100 million British pounds at an equilibrium exchange rate of $2 per pound, how many dollars are they supplying?
a. $2 million
b. $50 million
c. $2
d. $200 million
e. $100 million
D
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The number of years required for real GDP to double can be found by
A. multiplying the annual growth rate by 72. B. dividing 72 by the annual growth rate. C. adding 72 to annual growth rate. D. dividing the annual growth rate by .072.
The number of unemployed divided by the labor force equals
A) the inflation rate. B) the labor force participation rate. C) the unemployment rate. D) the misery index.
The Friedman—Phelps analysis shows that a negative relationship between inflation and unemployment holds
A) even when expected inflation changes. B) even when the natural rate of unemployment changes. C) even if both the expected inflation rate and the natural rate of unemployment change. D) as long as the expected inflation rate and the natural rate of unemployment are approximately constant.
If inflation is correctly anticipated, in a transaction between borrowers and lenders, inflation
a. will not reduce purchasing power of the money paid back b. will redistribute purchasing power from borrowers to lenders c. will not redistribute purchasing power d. will redistribute purchasing power from to lenders to borrowers e. cannot be taken into consideration when a loan is negotiated