The cost of inflation to society includes
A) unpredictable changes in the value of money.
B) higher interest rates paid by borrowers.
C) higher interest rates paid by the government on its debt.
D) the lost spending when people do not have enough money.
A
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Limit pricing in a contestable market sets the price at the highest level that ________
A) maximizes the profit of an entrant B) maximizes the profit of the existing firm C) maximizes the profit of both the existing firm and the entering firm D) inflicts a loss on an entrant
In economics, what does CPI stand for?
A) Continuous Price Inflation. B) Central Price Information. C) Consumer Price Index. D) Collateral Price Inflation.
The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. If Bob could keep $50 with certainty, his utility would be
A) a. B) b. C) c. D) d.
In finance, risk is most commonly measured by
A) the probability distribution. B) the standard deviation. C) the average deviation. D) the square root of the standard deviation.