Inflation occurs when there is an increase in the purchasing power of money
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
___________ in real estate expect to receive a return on their investment through the collection of rent and through price appreciation.
Fill in the blank(s) with the appropriate word(s).
Suits Only, a dry cleaning firm that specializes in cleaning business suits, operates in a perfectly competitive market. Robin Smith, an exceptionally talented manager, has been hired to manage Suits Only. In the dry cleaning business, a manager typically makes a salary of $400 per week. Suits Only faces the long-run average and marginal costs shown in the figure below. In long-run competitive equilibrium, the market price for cleaning a business suit is $4.50.
Given the above, if Robin Smith buys Suits Only and continues to manage it herself, she will
A. earn $75 in economic rent per week. B. earn zero economic profit. C. earn $75 in economic profit each week. D. both a and b.
Which of the following is NOT a reason that people tend to deposit their funds with banks rather than lend their funds directly to other individuals?
A. liquidity problems B. asymmetric information problems C. moral hazard problems D. adverse selection problems
The low point in the business cycle is referred to as the
A. peak. B. expansion. C. boom. D. trough.