If borrowers and lenders expect a higher rate of inflation
What will be an ideal response?
nominal interest rates will tend to rise
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The relationship between consumption and disposable income is such that as
A. consumption rises, disposable income falls. B. disposable income rises, consumption rises. C. disposable income rises, consumption falls. D. disposable income rises, saving falls.
If the Fed has a goal of stable real GDP and the government announces a tax cut, which of the following would occur?
a. Money demand would not change, real GDP would not change, the interest rate would decrease, and there would be partial crowding out. b. Money demand would not change, real GDP would not change, the interest rate would increase, and there would be complete crowding out. c. Money demand would increase, real GDP would not change, the interest rate would increase, and there would be partial crowding out. d. Money demand would not change, real GDP would increase, the interest rate would decrease, and there would be complete crowding out. e. Money demand would increase, real GDP would not change, the interest rate would decrease, and there would be complete crowding out.
For the fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat 100 meals, your marginal cost of the 100th meal is:
A. $4. B. $0. C. $0.25. D. $6.
Thinking at the margins means deciding about
a. maximizing goods and services. b. investing with borrowed money. c. adding or subtracting one additional unit of some resource. d. increasing or decreasing technical know-how.