A currency depreciation would _____ net exports, and therefore ___________ aggregate demand.
A. increase; increase
B. increase; decrease
C. decrease; decrease
D. None of the above is correct.
Answer: A
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A typical household in Orangeland consumes only orange juice and shorts. Last year, which was the base year, the household spent $400 on juice and $120 on shorts. In the base year, juice was $2 a bottle and shorts were $10 a pair
This year, juice is $3 a bottle, shorts are $12 a pair, and a typical household has bought 180 bottles of juice and 14 pairs of shorts. a) What is the basket used in the CPI? b) Calculate the CPI in the current year. c) Calculate the inflation rate in the current year. d) Is the inflation rate that you've calculated likely to be biased? Why or why not?
A discount bond is also called a ________ because the owner does not receive periodic payments
A) zero-coupon bond B) municipal bond C) corporate bond D) consol
A lumpy input is one that
a. is infinitely divisible b. is not smooth c. can only be adjusted in large amounts d. can not be legally employed e. can be easily adjusted in small amounts
Other things equal, which of the following is true?
a. A reduction in prices will increase the real wealth of those holding a fixed quantity of money. b. A reduction in prices will lead to a decline in net exports. c. A reduction in prices will increase the scarcity of money, raise the real interest rate, and, thereby, encourage investment and consumption. d. A reduction in prices will increase profit margins and, thereby, stimulate additional investment.