Rachel agrees to lend Phoebe $100 for six months and charges her interest of 2 percent. At the end of the six-month period, prices have risen by 4 percent.
A. Purchasing power has been redistributed to Rachel.
B. No purchasing power has been redistributed.
C. Purchasing power has been redistributed to Phoebe.
D. Both Rachel and Phoebe received extra purchasing power.
Answer: C
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The implicit GDP deflator is
A) nominal GDP divided by real GDP. B) nominal GDP times real GDP. C) real GDP divided by nominal GDP. D) the zero economic growth society.
A monopolist currently sells 18 units of a good. If marginal revenue on the last unit sold is $117, then the price of the good must be less than $117
Indicate whether the statement is true or false
When the price of corn falls relative to the price of wheat, the market supply of wheat (which can be grown on the same land) is likely to increase
a. True b. False Indicate whether the statement is true or false
The process of developing hypotheses, testing them against facts, and using the results to construct theories is called:
A. opportunity cost calculation. B. microeconomics. C. marginal analysis. D. the scientific method.