According to this Application, the recessions in 1973 and 1979 were caused by
A) foreign monetary developments. B) deflation.
C) arbitrage losses in the foreign exchange market. D) supply shocks.
D
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The uncertainty costs of inflation cause people to
A) incur more shoe leather costs. B) increase their demand for money. C) focus on the long run, which increases investment and speeds growth. D) focus on the short run, which decreases investment and slows growth. E) increase investment causing economic growth to decrease.
Marginal revenue equals the change in total revenue that is earned by selling one more unit of output.
Answer the following statement true (T) or false (F)
If price is cut and demand is elastic, total revenue will rise because
A) the change in quantity demanded is greater than the percent change in price. B) the percent change in quantity demanded is greater than the change in price. C) the percent change in quantity demanded is greater than the percent change in price. D) customers can't find substitutes.
Nominal increases take into account inflation adjustments over a period of time.
Answer the following statement true (T) or false (F)