Which one of the following would benefit financially from unanticipated inflation?
A) a borrower whose loan has a fixed nominal interest rate
B) a borrower with an adjustable rate mortgage
C) a bank that has made loans at a fixed nominal interest rate
D) a firm whose workers are covered by a COLA agreement
A
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Narrow framing:
A. refers to the observation that people tend to value something more highly when they own it than when they don't. B. refers to the observation that people tend to value something more highly when they don't own it than when they do. D. refers to the observation that people must make choices in the presence of uncertainty.
A firm's opportunity costs of using resources provided by the firm's owners are called
a. sunk costs b. fixed costs c. explicit costs d. implicit costs e. entrepreneurial costs
The statement, "Corn is not high because a rent is paid, but a rent is paid because corn is high," was made by _________.
Fill in the blank(s) with the appropriate word(s).
Keynesians believe that the two basic cures for a recession are _____ and _____.
Fill in the blank(s) with the appropriate word(s).