There is a negative relationship between two variables if:
A. they move in opposite directions.
B. they move in the same direction.
C. one variable changes and the other does not.
D. neither variable moves.
Answer: A
Economics
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Economics
The government of Crossland wants to influence its exchange rate. It will do so by buying and selling:
A. commodities. B. transfers. C. goods and services from the current account. D. currencies in its official reserves.
Economics