Dramatic reductions in costs of producing computers in the 1980s and equally dramatic increases in the demand for computers result in
A. increases in the quantity and price for computers.
B. increases in the quantity of computers and reductions in the price of computers.
C. decreases in the price and quantity of computers.
D. decreases in the quantity of computers and increases in the price of computers.
Ans: B. increases in the quantity of computers and reductions in the price of computers.
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In the long run, the chief determinant of exchange rate changes is a change in
a. interest rates. b. real GDP. c. the price of gold. d. price levels.
Cash inflows and outflows are netted in the investing activities section of the statement of cash flows in order to simplify the statement.
a. true b. false
All of the following are examples of macroeconomic problems EXCEPT
A) inflationary pressures caused by an increase in the cost of petroleum. B) unemployment caused by a fall off in the level of residential construction. C) a decline in the rate of overall economic growth. D) consumers deciding to buy more fish and less beef because of concerns about a healthier diet.
Which of the following is not a cost imposed by inflation?
A) Inflation reduces the affordability of goods and services to the average consumer. B) The money that consumers and firms hold loses its purchasing power. C) Firms must pay for changing prices on products and printing new catalogs. D) Banks can lose if they under predict inflation and charge an interest rate that does not completely compensate for inflation.