The late Hugo Chavez, Venezuela's former president, proposed that the independence of the Venezuelan central bank be eliminated
Given the research on the relationship between central bank independence and inflation, we should expect this event to cause inflation to ________ and the real exchange rate to ________ between the two counties. (Assume the nominal exchange does not change, and that the United States is the domestic country).
A) rise in Venezuela relative to the United States; fall
B) rise in Venezuela relative to the United States; rise
C) fall in Venezuela relative to the United States; fall
D) fall in Venezuela relative to the United States; rise
A
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Billy is a plumber. He earns $15 per hour. One morning, just before he was leaving for work, he found a pipe in his kitchen leaking. He spent two hours repairing the pipe
i) How will this affect the calculation of GDP? ii) If Billy had spent two hours working for one of his clients, what would have been the effect of his activity on the calculation of GDP?
Describe the situation in the market for a good or service that the United States imports
What will be an ideal response?