If people suddenly anticipate that inflation will rise during the next year, which of the following is most likely?
a. Nominal interest rates will rise.
b. Nominal interest rates will decline.
c. The demand for goods and services will decline.
d. Both the real and nominal interest rates will decline.
A
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Retailers do not find it profitable to engage in promotional activities because
a. They reap the full benefits of the promotion b. They have to share the benefits of the promotion with the manufacturer c. They are unaware of competing retailers' ability to "free ride" on their efforts d. All of the above
The primary purpose of a budget is to
What will be an ideal response?
A supply restriction that restricts the amount of a good that can be imported is a(n)
A. black market. B. import quota. C. white market. D. tariff.
When an economics student draws a supply and demand diagram to model an increase in the income, she is assuming this change happens
A. ceteris paribus. B. ipso facto. C. semper fidelis. D. de facto.