According to a study by Thomas Cooley and Gary Hansen, the cost in lost consumption of a 10% per annum rate of inflation is
A) negative.
B) approximately 0.001%.
C) approximately 0.5%.
D) approximately 5.0%.
C
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Does a stock certificate or a bond represent ownership of a company and a claim on its profits?
What will be an ideal response?
When income levels in the home nation increase, what is the effect on the home TB?
a. It decreases because of expenditure switching. b. It decreases because of an increase in imports. c. It increases because of an increase in exports. d. It increases because of expenditure switching.
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. either increase or decrease depending on the relative shifts of AD and AS. B. increase. C. decrease. D. not change.
If income decreases by 20% and, in response, the quantity of housing demanded decreases by 14%, then the income elasticity of demand for housing is
A. -1. B. 1.43. C. -0.7. D. 0.7.