Compared to a Situation in Which There Is No Change

question 147

Multiple Choice

Compared to a situation in which there is no change in the value of the dollar relative to the peso,in which of the following situations would you be worse off?

• A)you borrow 10,000 pesos,you earn income in dollars,the dollar appreciates against the peso,you must pay back the loan in pesos
• B)you borrow $10,000,you earn income in pesos,the dollar depreciates against the peso,you must pay back the loan in dollars
• C)you borrow $10,000,you earn income in pesos,the dollar appreciates against the peso,you must pay back the loan in dollars
• D)you borrow 10,000 pesos,you earn income in pesos,the dollar depreciates against the peso,you must pay back the loan in pesos

Distinguish between nominal GDP, real GDP, and GDP deflator.

Understand the impact of population growth, inflation, and deflation on GDP and real per capita GDP.

Analyze the factors that may cause GDP to overstate or understate economic well-being.

Differentiate between final goods and intermediate goods and their roles in GDP calculation.

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Definitions:

Meteorite

A solid piece of debris from an object, such as a comet, asteroid, or meteoroid, that originates in outer space and survives its passage through the Earth's atmosphere to reach the ground.

Nonsilicates

Minerals that do not contain silicon-oxygen tetrahedra, including classes like oxides, sulfides, and carbonates.

Silicon

A chemical element, symbol Si, known for its semiconductor properties and widely used in electronic devices and solar cells.

Earth's Crust

The outermost layer of the Earth, composed of solid rocks and minerals, and divided into the thicker continental crust and the thinner oceanic crust.