Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C
B. Falling; A; C
C. Falling; A; B
D. Rising; A; C
Answer: D
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If the slope of the relationship between savings and interest rates is 0.5, then
A) savings and interest rates have a positive relationship B) savings and interest rates have a negative relationship C) savings and interest rates have no relationship D) savings and interest rates have an inverse relationship
A Big Mac costs $4.79 in the United States and 9.6 zlotys in Poland. If the exchange rate is 3 zlotys per dollar, what is the dollar cost of a Big Mac in Poland?
A) $1.60 B) $2.00 C) $3.20 D) $4.64
Which of the following is not a true statement about the foreign exchange market?
a. Trading for foreign exchange is conducted without interruption (24 hours a day) during the workweek. b. Prices for foreign currencies are the usually same throughout the world. c. Bid-ask-spreads are bigger in the wholesale than in the retail market for foreign exchange. d. The wholesale volume surpasses the retail volume by a huge margin.
Suppose the money supply is set to grow at 7%, real GDP grows at 5%, and the expected real interest rate on Aaa corporate bonds averages 6%
Using the quantity theory of money and the Fisher equation, the nominal interest rate on the Aaa corporate bond should be A) -2%. B) 2%. C) 6%. D) 8%.