Which of the following statements is true?
A) Black markets for currency are more likely to occur in countries with undervalued currencies than with overvalued currencies.
B) Black markets for currency are more likely to occur in countries with convertible currencies than with non-convertible currencies.
C) Black markets for currency are more likely to occur in countries with overvalued currencies than with undervalued currencies.
D) Black markets for currency are equally likely to occur in countries with undervalued currencies or with overvalued currencies.
C
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If the economy is fully employed, which of the following is true?
A) The price level equals 100. B) Real and nominal GDP are equal. C) Real and potential GDP are equal. D) The unemployment rate is zero. E) Real GDP cannot increase.
Aggregate demand's downward-sloping character reflects three principal influences as shown in which of the following?
a. People's desire to maintain real wealth holdings, the interest rate, and international trade. b. People's desire to increase the price level, the interest rate, and the economic growth effect. c. The interest rate, the economic growth effect, and international trade. d. Cost-pull inflation, demand-pull inflation, and the need to maintain real wealth holdings. e. Recession phases of the business cycle, upturns, and downturns.