When the central bank of some country prints large quantities of money, that county's currency loses value both in terms of the goods and services it buys and in terms of the amount of foreign currencies it can buy
a. True
b. False
Indicate whether the statement is true or false
True
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Explain how a model can be useful even if it is not realistic
What will be an ideal response?
Policies to keep inflation in check ________
A) are, typically, fiscal policies B) are a potential cause of high unemployment C) are unlikely to be needed, so long as government spending remains high D) include increasing the quantities of money and saving E) are desirable in the short run, but may produce bad long-run outcomes
One factor that might lead to reduced trade or incomplete specialization is
a. absolute advantage b. comparative advantage c. government-enacted barriers to trade d. constant opportunity cost e. decreasing opportunity cost
Which of the following lists correctly identifies the four expenditure categories of GDP?
a. consumption, government purchases, investment, net-exports b. consumption, investment, depreciation, net-exports c. consumption, saving, investment, depreciation, d. consumption, government purchases, investment, savings