For this question, assume that the expected rate of inflation is a function of past year's inflation. Also assume that the unemployment rate has greater than the natural rate of unemployment for a number of years. Given this information, we know that
A) the rate of inflation will approximately be equal to zero.
B) the rate of inflation should neither increase nor decrease.
C) the rate of inflation should steadily increase over time.
D) the rate of inflation should steadily decrease.
E) the inflation rate will be approximately equal to the natural rate of unemployment.
D
Economics
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Refer to the figure above. Domestic consumers of this product in A would most prefer
A) a customs union with C. B) a customs union with B. C) a free trade agreement with C. D) no agreement with either country.
Economics
If the required reserve ratio is .25, demand deposits are $400 million, and total reserves are $150 million, then excess reserves are
A) $25 million. B) $50 million. C) $75 million. D) $125 million.
Economics