A major factor in determining the rational expectation of inflation is
A) the size of the budget deficit.
B) forecasts of the Fed's monetary policy.
C) forecasts of fiscal policy.
D) the previous month's unemployment rate.
E) the recent past behavior of the stock market.
B
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Remittances to foreign countries from legal and illegal residents of the U.S. are examples of ________
A) factor payments B) exports C) imports D) transfer payments There are two countries - Earthland and Plutoland - who trade only with each other. Residents in Earthland purchased buildings worth $10 billion in Plutoland during a certain year. None of the other transactions between the two countries during that year involved purchase or sale of assets.
For each one dollar increase in real GDP, aggregate planned expenditure
A) increases by less than a dollar. B) increases only if autonomous expenditure increases. C) increases by one dollar. D) increases by more than a dollar. E) is unaffected.