If the rate of return is higher than the cost of borrowing the:
A. investor will lose money on net after paying back the loan.
B. investor will make money on net after paying back the loan.
C. saver will make less money on net than the borrower.
D. borrower will make more money on net than the saver.
B. investor will make money on net after paying back the loan.
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Given the budget line in the figure above, the combination of chips that is NOT affordable is
A) a. B) b. C) c. D) d.
If inflation falls from 11% to 5%, there is deflation
Indicate whether the statement is true or false
Describe the strategy of inflation targeting. Why have many countries begun to use this strategy instead of targeting money growth? What are the advantages and disadvantages of inflation targeting?
What will be an ideal response?
What fiscal policies can be used to get the economy out of a contractionary gap?
a. Increase tax rates and increase government spending. b. Decrease tax rates and decrease government spending. c. Decrease tax rates and increase government spending. d. Increase tax rates and decrease government spending.