Suppose the U

question 94

Multiple Choice

Suppose the U.S. economy is producing at the natural rate of output. A depreciation of the U.S. dollar will cause ________ in real GDP in the short run and ________ in inflation in the short run,everything else held constant. (Assume the depreciation causes no effects in the supply side of the economy. )

• A)an increase;an increase
• B)a decrease;a decrease
• C)no change;an increase
• D)no change;a decrease

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Definitions:

Restrictive Covenants

Clauses in a contract or deed that limit how a piece of property can be used, to protect the value of adjacent properties or enforce a particular standard.

Eminent Domain

The authority of a government to take private property for public purposes, providing payment to the property owner.

Zoning

The regulatory process of dividing land into areas with specific uses, such as residential, commercial, or industrial, to control urban development.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," implying that the buyer assumes the risk regarding the quality of the goods purchased, unless they are protected by warranty.