The shoeleather cost of inflation refers to
a. the redistributional effects of unexpected inflation.
b. the time spent searching for low prices when inflation rises.
c. the waste of resources used to maintain lower money holdings.
d. the increased cost to the government of printing more money.
c
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If both market demand and supply increase simultaneously by the same magnitudes, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. Not change; decrease b. increase; increase c. increase; not change d. None of the above are correct
Which of the following is correct? Price controls
a. always help those they are designed to help. b. never help those they are designed to help. c. often hurt those they are designed to help. d. always hurt those they are designed to help.
Recall the Application about the short-run and long-run elasticity of supply of coffee to answer the following question(s). Recall the Application. In the long run, the supply curve for coffee is ________ and the elasticity of supply is ________ than in the short run.
A. steeper; larger B. steeper; smaller C. flatter; larger D. flatter; smaller
A country's foreign exchange reserves refers to
A) the currency of the nation itself. B) the country's holdings of gold and internationally accepted currencies. C) the total amount of a country's currency held by other nations. D) the country's Special Drawing Rights (SDRs) at the IMF.