Mortgages with variable interest rates:
a. increase the risk of expected inflation to creditors.
b. increase economic efficiency.
c. are offered at interest rates that can be adjusted to changes in inflation over time.
d. make borrowers worse off when inflation increases
e. shift the risk of unexpected inflation from the borrower to the lender.
c
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If a monopolist were allowed (and able) to first degree price discrimination, there would be no efficiency/equity tradeoff so long as the government can tax the profits of the firm and redistribute the tax revenues in a lump sum way.
Answer the following statement true (T) or false (F)
Prior to 1995 productivity growth in Europe was ________ in the United States
A) higher than B) lower than C) same as D) None of the above
Aggregate income equals:
a. total profits. b. aggregate output. c. aggregate expenditure. d. b and c. e. all of the above.
A contractionary policy can be thought of as: a. a decrease in the money supply b. an increase in the money supply c. an increase in the interest rate
d. either (a) or (c).