Why is deflation such a problem?
A. It increases the value of debt, making it harder to pay it back.
B. It decreases the value of debt, making it harder to pay it back.
C. It increases the value of debt, making it easier to pay it back.
D. It decreases the value of debt, making it easier to pay it back.
A. It increases the value of debt, making it harder to pay it back.
You might also like to view...
A household that expects a decrease in disposable income in the future will _____
a. increase its current consumption spending b. decrease its current consumption spending c. maintain its current consumption spending d. first increase its current consumption spending and then decrease spending when income falls e. first decrease its current consumption spending and then increase spending when income falls
Assume the nation of Teeveeland does not trade with the rest of the world. By comparing the world price of televisions to the price of televisions in Teeveeland, we can determine whether
a. consumer surplus exceeds producer surplus in Teeveeland. b. Teeveeland has an absolute advantage in producing televisions. c. Teeveeland has a comparative advantage in producing televisions. d. All of the above are correct.
Suppose that supply increases and demand decreases. What effect will this have on price and quantity?
A. Price will decrease and quantity will increase. B. Price will decrease and quantity will decrease. C. Price will increase and quantity may rise or fall. D. None of the statements associated with this question are correct.
If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then the firm's Lerner Index equals
A) 58/16. B) 16/42. C) 58/42. D) 42/58.