Inflation
What will be an ideal response?
reduces the purchasing power of the dollar.
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Accelerated depreciation laws may increase firms' investment in equipment because:
a. machines will wear out more rapidly. b. profits will be increased. c. the rental rate on capital will be reduced. d. the price of machines will fall.
If there is capital flight from the United States, then the demand for loanable funds
a. and the supply of dollars in the foreign-exchange market shift right. b. and the supply of dollars in the foreign-exchange market shift left. c. shifts left while the supply of dollars in the foreign-exchange market shifts right. d. shifts right while the supply of dollars in the foreign-exchange market shifts left.
Which of the following best describes the goal of economic efficiency?
(A) Making the most of resources. (B) Achieving full employment. (C) Assurance that goods and services will be available. (D) Fair distribution of wealth.
Suppose the real wage of a worker remains unchanged between Year 1 and Year 2 but the nominal wage decreases from $20 in Year 1 to $18 in Year 2. This implies that the price level has _____
Fill in the blank(s) with the appropriate word(s).