An added benefit of inflation is that it allows for the possibility of
a. menu costs.
b. aggregate supply shocks.
c. negative real interest rates.
d. recessions.
c
You might also like to view...
If a farmer’s opportunity cost of producing 10,000 bushels of wheat is 5,000 fewer bushels of soybeans, then his or her opportunity cost of producing 5,000 bushels of soybeans must be 10,000 fewer bushels of wheat.
Answer the following statement true (T) or false (F)
Transfer payments include:
a. government spending on tanks and planes. b. government spending on national forests and parks. c. the salaries of senators and federal judges. d. welfare benefits and Social Security payments.
Which of the following statements is correct?
a. The more similar Firm A's product is to Firm B's product, the more likely Firm A is to advertise. b. Monopolistically competitive firms advertise in order to increase the elasticity of the demand curve they face. c. According to the signaling theory, the more product information an advertisement contains, the more effective it is. d. Brand names may help consumers if they provide information about the quality of a product when acquiring such information is difficult.
Which of the following was not a criticism of the unconventional monetary policy used by the Fed in 2009 and 2010?
A. Tendency toward higher unemployment B. Tendency toward higher inflation C. Usurping authority which should be allocated to Congress D. Determining which banks would be allowed to fail