You borrow money to buy a house in 2009 at a fixed interest rate of 5.5 percent. By 2012, the inflation rate has steadily fallen to 1.5 percent from the recent high of 3.0 percent in 2009
Considering only your mortgage, is inflation good news or bad news for you?
A) bad news, because it makes the nominal value of your mortgage payments increase
B) bad news, because it makes the real value of your mortgage payments increase
C) good news, because it makes the real value of your mortgage payments decrease
D) bad news, because inflation hurts everyone
B
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What is the average cost per unit for producing 3 units? a. 200. b. 260. c. 70
d. 110.
In terms of importance, what place does the advent of the euro hold in economic history?
A) It is an important innovation in the evolution of fixed exchange rates. B) It is an interesting experiment from which we can learn lessons. C) It is a bold experiment, affecting hundreds of millions of people in one of the most prosperous economic regions. D) In the grand scheme of things, the euro is less important than the fixed exchange rate scheme devised in Bretton Woods, New Hampshire.
Physical capital is
A. the talents, training, and education of workers. B. the factories and machinery used to produce other goods and services. C. the financial resources available for investment. D. the physical labor of workers.
A country has a comparative advantage if it can produce a good or service
A. at a higher opportunity cost than can other nations. B. at a lower opportunity cost than can other nations. C. by using less resources than other nations. D. that lies outside its production possibilities curve.