The emerging market economies are
A) the nations with the highest standards of living.
B) most of the nations of Western Europe.
C) in transition from state-owned production to free markets.
D) the largest grouping including the nations of China and India.
E) the nations that are currently agricultural in nature.
Question 2
Consider an economy that is greatly dependent on the U.S. economy for consumer goods and durables. Inflation will increase in the economy if:
A) the dollar appreciates vis--vis its own currency.
B) the U.S. goes into a recession.
C) the dollar depreciates vis--vis its own currency.
D) the country adopts dollar as its official currency.
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