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18. Which of the following is an example of the cost of inflation? (a) People wait in line to withdraw money they deposited into interest-bearing

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18. Which of the following is an example of the cost of inflation? (a) People wait in line to withdraw money they deposited into interest-bearing accounts to guard against inflation. (b) Carrefour changes the price tag of a product they carry because that product is suddenly in great demand. (c) The government computational cost of calculating the GDP deflator. (d) The loss of purchasing power of money. 19. A country had a trade deficit of $100 billion. If its exports rose by $40 billion and its imports rose by $30 billion, then its net capital outflow would now be (a) $110 billion. (b) -$110 billion. (c) $90 billion. (d) -$90 billion. 20. Suppose that the price level in the home country increases while the price level in a foreign country remain unchanged. According to the purchasing-power parity, (a) the home currency will appreciate. (b) the home currency will depreciate. (c) the foreign currency will depreciate. (d) Both (a) and (c) are correct

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