Inflation can be caused by
a. increases in aggregate demand only
b. increases in aggregate supply only
c. decreases in aggregate supply only
d. increases in aggregate supply or decreases in aggregate demand
e. increases in aggregate demand or decreases in aggregate supply
E
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A tax accountant categorizes costs in conformity with rules of the Securities and Exchange Commission and the Financial Accounting Standards Board so that investors can better compare the records and prospects of different companies
Indicate whether the statement is true or false
The trade-creation effect refers to:
a. the outcome of a preferential trade agreement that reduces economic efficiency by shifting production to a higher-cost producer. b. the effect of an increase in the quantity of imports relative to the effect of a tariff applicable to all imports. c. the outcome of a preferential trade agreement that allows a country to obtain goods at a lower cost than is available at home. d. the effect of a diversion of production to a country that has comparative advantage due to a free trade agreement. e. the effect of a decrease in the quantity of exports relative to the effect of a subsidy applicable to all exports.
The discount rate is the interest rate
A) banks pay on certificates of deposit. B) the Fed pays on reserves held by banks. C) the Fed charges when it lends reserves to banks. D) banks charge their loan customers. E) on short-term Treasury securities.
High oil prices in the 1970s motivated ________ to look for oil, which was found in ________.
A. the United Kingdom; the North Sea B. Saudi Arabia; their desert C. the Soviet Union; the Ural Mountains D. the United States; Oklahoma