Inflation is a problem when
A) it is unpredictable.
B) it causes the value of money to vary unpredictably.
C) it causes resources to be diverted from productive uses.
D) All of the above answers are correct.
Question 2
An increase in foreign demand for U.S. exports will ________ the demand for dollars and lead the dollar to ________.
A) increase; appreciate
B) increase; depreciate
C) decrease; appreciate
D) decrease; depreciate