When a lender underestimates the rate of inflation,
a. purchasing power is redistributed to the lender.
b. purchasing power is redistributed to the borrower.
c. the real rate of interest will be higher than expected.
d. the nominal interest rate was set too low.
b
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To be as well off as possible, a nation should produce
a. only those goods that its populace desires. b. the good within its productive capabilities that commands the highest price in the world market. c. the good that requires the fewest resources to produce. d. whatever good it can produce at a cost lower than that incurred by other nations.
If expected future income increases, then
A) the supply of loanable funds increases. B) the quantity of loanable funds supplied decreases. C) the supply of loanable funds decreases. D) the demand for loanable funds decreases. E) the quantity of loanable funds demanded increases.
If production is characterized by variable technology, the optimal level of air quality occurs where
a. the marginal private cost of air quality equals the marginal social benefit b. the marginal social cost of air quality equals the marginal social benefit c. the marginal social cost of air quality equals the marginal private cost of air quality d. government regulators set it e. all costs are absorbed by the polluter
Which of the following will cause the demand curve for iTune music services to shift to the left?
A. a rise in the price of iTune music services B. the creation of several popular iTune songs C. a decrease in average incomes of iTune music subscribers if iTune music services are a normal good D. an increase in population