After a particular loan has been paid off, neither the borrower nor the lender has lost purchasing power. Therefore, it must be true that actual inflation was
A. greater than expected inflation.
B. equal to expected inflation.
C. less than expected inflation.
D. greater than the nominal rate of interest.
Answer: B
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From the information in the above table, what is the marginal utility of the third quart of ice cream?
A) 80 B) 70 C) 60 D) 230
If total cost is $1,000 when output is zero, and total cost is $1,200 when output is one, and total cost is $1,500 when output is two, then which of the following is true?
a. Total fixed cost is $1,500. b. The marginal cost of producing the first unit of output is $1,200. c. The marginal cost of producing the second unit of output is $300. d. The average fixed cost is $750 when two units of output are produced.
Suppose the price of a product is reduced from $10 to $6 and the quantity demanded increases from 40 to 60 units. From this we can conclude that the price elasticity of demand over this price range is equal to _____
a. 1.2 b. 1.25 c. 0.80 d. 0.20 e. 0.5
Give an example that shows how price level can shift the money demand curve and another that shows how RGDP can shift this curve.
What will be an ideal response?