If the price of inputs rises and consumer expectations about future economic activity worsens:
a. The change in price index is uncertain, and real GDP falls.
b. The change in price index is uncertain, and real GDP rises.
c. Price index rises, and the change in real GDP is uncertain.
d. Price index falls, and real GDP rises.
e. Price index falls, and real GDP falls.
.A
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If the United States has a current account deficit with England of $1 million, and the Bank of England sells $1 million worth of pounds in the foreign exchange market, then England ________ $1 million of international reserves and its monetary base
________ by $1 million. A) gains; rises B) gains; falls C) loses; rises D) loses; falls
A merger between a leather supplier and a shoe manufacturer would be classified as a:
a. horizontal merger. b. vertical merger. c. conglomerate merger. d. keiretsu.