Which of the following is true concerning the effects of inflation?
a. inflation hurts those on fixed incomes
b. inflation benefits debtors
c. inflation hurts creditors
d. All of the above are true.
d. All of the above are true.
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During the financial crisis in 2007 and 2008, financial institutions believed that default risks were higher. As a result, there was ________ in the supply of loanable funds and a ________ in the real interest rate
A) a decrease; fall B) an increase; rise C) an increase; fall D) a decrease; rise
Explain why GDP was never intended to be a measure of social well being
Which of the following will enter as a credit in the U.S. balance of payments capital account?
a. the purchase of a Japanese automobile by a U.S. consumer b. the sale of Japanese electronics to an American c. the sale of an American baseball team to a Japanese industrialist d. the purchase of a Japanese electronics plant by an American industrialist
A firm switching from a single price to a price discrimination scheme will ________ the price for the group of consumers with a relatively elastic demand and ________ the price for the group of consumers with a relatively inelastic demand.
A. decrease; increase B. decrease; decrease C. increase; increase D. increase; decrease