Exhibit 3-3 Demand curves
Assume that consumers expect the price of gasoline to rise sharply in the future. Which of the graphs in Exhibit 3-3 depicts this effect?

A. Graph A.
B. Graph B.
C. Graph C.
D. Graph D.

Answer: A

Economics

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George believes that the inflation in this year will be around 9% because it was around 9% in the previous year. George can be said to have:

A) rational expectations. B) marginal expectations. C) adaptive expectations. D) composite expectations.

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Which of the currencies below does not serve a role as an international reserve currency?

A) European euro B) Japanese yen C) U.S. dollar D) Mexican peso

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