Given a fixed nominal interest rate on a loan, unanticipated deflation:
a. decreases the burden of paying off the loan
b. increases the burden of paying off the loan.
c. does not alter the burden of paying off the loan.
d. has an indeterminate effect on the burden of paying off the loan.
b
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In the DMP model, a decrease in matching efficiency
A) has no effect on vacancies. B) reduces the unemployment rate. C) increases labor market tightness. D) increases the size of the labor force.
The peak oil hypothesis says that the annual world production of oil
a. will not peak for several hundred years. b. peaked in the past two decades and is now rapidly declining. c. will peak in the coming decades and then decline. d. is now peaking and a major decline is imminent.
All economists believe that:
A. assumptions are irrelevant to the outcome of a model. B. people are selfish. C. people follow principles of enlightened self-interest. D. incentives are important.
All else equal and given the current system of exchange rates, if the United States enters a period of exceptionally strong growth,
A) the pressure on the dollar is to revalue. B) the pressure on the dollar is to devalue. C) the pressure on the dollar is to depreciate. D) the pressure on the dollar is to appreciate.