The CPI stands for
A) Citizens Paying Index.
B) Corporate Pricing Index.
C) Consumer Paying Index.
D) Consumer Price Index.
E) Corporate/Consumer Payment Index.
D
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Refer to the information above. Which of the following represents the level of investment needed to maintain a constant capital stock (K) in this economy?
A) .02K B) .03K C) .05K D) .10K E) .15K
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the reserves account and monetary base in the context of the Three-Sector-Model? a. The reserves account falls and monetary base falls
b. The reserves account rises and monetary base falls. c. The reserves account and monetary base remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables.