The typical relationship between inflation and unemployment is:
A. as unemployment falls, inflation falls.
B. as unemployment falls, inflation increases.
C. as unemployment falls, nothing happens to inflation.
D. unemployment changes do not directly lead to changes in inflation, but inflation changes may cause changes in unemployment.
Answer: B
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What is the more efficient choice: sending one's child to John Q. Public High School at zero dollar tuition or to Purebred Prep School at several thousand dollars a year?
A) High school, because it's much cheaper. B) Prep school, because it's much higher in quality of instruction. C) Prep school, because what matters most is not what you know, but who you know. D) It depends on the decision makers' own evaluations of cost and benefit.
If Juana contracts to buy U.S. office equipment in U.S. dollars and her domestic currency depreciates against the U.S
dollar between the time the contract is signed and the bill is paid, she will wind up paying less for the equipment because she stayed in the spot market. Indicate whether the statement is true or false