The analysis of the three major macroeconomic markets shows:
a. That GDP is a constant figure which is not influenced by any movements in the three markets.
b. That the three markets are uncorrelated and movements in one market are independent from movements in the other two markets.
c. That movements in one market cause predictable changes in the other two markets.
d. A) and B) are both correct.
Question 2
How much will a car, which currently sells for 30,000, cost in 10 years if the inflation rate is 5 per year, and car makers are able to increase prices with the inflation rate (rounded to nearest dollar).
a. 45,000
b. 45,500
c. 48,314
d. 38,403
e. 48,867
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