From 1970 to 1998 the U.S. dollar
a. gained value compared to the German mark because inflation was higher in the U.S.
b. gained value compared to the German mark because inflation was lower in the U.S.
c. lost value compared to the German mark because inflation was higher in the U.S.
d. lost value compared to the German mark because inflation was lower in the U.S.
c
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An economy characterized by high unemployment is likely to be
A. having a recessionary expenditure gap. B. having an inflationary expenditure gap. C. experiencing hyperinflation. D. experiencing a high rate of economic growth.
Redistribution can be thought of as insurance because _____
a. those with low incomes often do not think of purchasing insurance b. those with low incomes cannot afford insurance c. individuals want to protect themselves from the small probability that they might become impoverished d. a and b
In a flexible exchange rate regime, a reduction in the expected future exchange rate will cause
A) the IP curve to shift to the left/up. B) the IP curve to shift to the right/down. C) a movement along the IP curve. D) neither a shift nor movement along the IP curve.
YearSalaryCPI1969$20,52036.71979$43,26572.61989$85,529124.01999$135,250166.62009$170,844214.5How can we use the information from the table shown to compare the real value of the 1979 salary to that of the one earned in 2009?
A. You need to put the 2009 salary into real 2009 terms to compare it to 1979. B. You can see that the salary has increased from $43,265 to $170,844. C. You need to put both salaries into real dollars in the same year for comparison. D. There is no real way to compare the two without more information.