"The hotter it gets, the more water people drink." This statement implies that the relationship between temperature and water consumption must have a

Explanations for the decline in U.S. productivity in the 1970s and 1980s include all of the following except:

a. difficulties with measuring service sector output. b. the entry into the labor force of many young, inexperienced workers. c. a wave of corporate mergers that reduced competition. d. rising oil prices.

Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and reserve-related (central bank) transactions in the context of the Three-Sector-Model?

a. The GDP Price Index falls, and reserve-related (central bank) transactions become more negative (or less positive). b. The GDP Price Index and reserve-related (central bank) transactions remain the same. c. The GDP Price Index falls, and reserve-related (central bank) transactions remains the same. d. The GDP Price Index rises, and reserve-related (central bank) transactions become more positive (or less negative). e. The GDP Price Index rises, and reserve-related (central bank) transactions remains the same.