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

Economics

You might also like to view...

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

Economics

The primary purpose of a budget is to

What will be an ideal response?

Economics

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.

Economics

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.

Economics