Inflation can occur even under conditions of full employment
A) only if the central bank continues to inject money into the economy and the agents' expectations of inflation are supported by the bank's activities.
B) only if the central bank continues to inject money into the economy.
C) only if the central bank continues to withdraw money from the economy.
D) only if the central bank continues to inject money into the economy and all agents expect that inflation will not occur.
E) only if the central bank fails to inject money into the economy.
Correct Answer:
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Q3: By internal balance, most economists mean
A) full
Q3: Countries where investment is relatively
A)productive should have
Q9: A current account deficit
A) will not pose
Q10: Governments prefer to avoid excessive current account
Q11: By external balance, most economists means,
A) avoiding
Q12: A sudden increase in the U.S. price
Q12: Countries with
A) strong investment opportunities should invest
Q15: Which one of the following statements is
Q18: A sudden increase in the U.S.price level
A)makes
Q19: Countries where investment is
A) relatively unproductive should
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