A decrease in the price of a currency in terms of another under a flexible exchange rate regime is called:
a. capital flight.
b. depreciation.
c. revaluation.
d. devaluation.
e. currency adjustment.
b
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If a nation's population grows, then
A) growth in real GDP per person will be less than the growth of real GDP. B) there can be no economic growth. C) growth in real GDP per person will be greater than the growth of real GDP. D) there must be an increase in real GDP per person.
Under the adaptive expectations theory, people persistently
a. underestimate inflation when it is slowing down. b. overestimate inflation when it is accelerating. c. underestimate inflation when it is accelerating. d. adapt to the prevailing inflation rate quickly.
According to the classical model, which of the following would double if the quantity of money doubled?
a. prices but not nominal income b. nominal income but not prices c. both prices and nominal income d. neither prices nor nominal income
Based on the table below and the principle of diminishing returns to capital, then total packages wrapped when a fourth machine is installed must be less than ________ packages.Number of (Identical) MachinesTotal Packages Wrapped15,00029,000312,000
A. 15,000 B. 12,000 C. 4,000 D. 3,000