Homework Clinic
Social Science Clinic => Economics => Topic started by: joe on Jun 29, 2018
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Accurate predictions for exchange rates can be determined by considering purchasing power parity.
Indicate whether the statement is true or false
Question 2
The uncertainty costs of inflation cause ________ because ________.
A) a decrease in investment and slower growth; people focus on the long run and not the short run
B) an increase in investment and faster growth; people focus on the short run and not the long run
C) a decrease in investment and slower growth; people increase their demand for money
D) a decrease in investment and slower growth; people focus on the short run and not the long run
E) an increase in investment and faster growth; people decrease their demand for money
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Answer to Question 1
FALSE
Answer to Question 2
D
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Thank you :)
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