Which of the following statements best describes relative inflation?
a. If the country Economia experiences a relatively low inflation rate compared with other economies, then the buying power of its currency is eroding, which will tend to discourage anyone from wanting to acquire or to hold the currency.
b. If the country Economia experiences a relatively high inflation rate compared with other economies, then the buying power of its currency is eroding, which will tend to discourage anyone from wanting to acquire or to hold the currency.
c. If the country Economia experiences a relatively high inflation rate compared with other economies, then the buying power of its currency is increasing, which will tend to discourage anyone from wanting to acquire or to hold the currency.
d. If the country Economia experiences a relatively low inflation rate compared with other economies, then the buying power of its currency is increasing, which will tend to discourage anyone from wanting to acquire or to hold the currency.
b. If the country Economia experiences a relatively high inflation rate compared with other economies, then the buying power of its currency is eroding, which will tend to discourage anyone from wanting to acquire or to hold the currency.
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The basic economic differences among nations throughout history concerning institutions, philosophy, and ideology mainly focus on:
A) unemployment and inflation. B) the ownership of factors of production and how they are coordinated in economic activity. C) the relative shares of agriculture, industry, and service sectors. D) the opportunity for social mobility.
Which of the following would cause the dollar to depreciate?
A) an increase in the demand for dollars B) a decrease in the demand for imports from foreign countries C) a decrease in the supply of dollars D) a decrease in the demand for dollars