Generally, expenses on a truck are a large part of a consumer's budget, so the demand for trucks is more likely to be

The costs of a recession are largely

A) losses to some people but gains to others. B) made up in the subsequent recovery. C) the consequences of falling prices. D) the costs of disappointed expectations. E) welcomed by advocates of zero economic growth.

Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model?

a. The GDP Price Index falls, and nominal value of the domestic currency falls. b. The GDP Price Index falls, and nominal value of the domestic currency remains the same. c. There is not enough information to determine what happens to these two macroeconomic variables. d. The GDP Price Index rises, and nominal value of the domestic currency rises. e. The GDP Price Index falls, and nominal value of the domestic currency rises.