Mitch makes payments on a car loan. If the price level a year ago was 120 and people expected it to rise to 125 but it actually rose to 128, what happened to the real value of Mitch's payment as opposed to what he was expecting to happen? Express your answer to the nearest 100th


He was expecting it to fall by 4.17%, but it actually fell by 6.67%.

Economics

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A. medical care B. transportation C. apparel D. housing

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Financial innovations may be expected to cause a decline in ________

A) financial frictions B) the credit spread C) the real interest rate on investments D) all of the above E) none of the above

Economics

The Board of Governors is made up of experts in:

A. finance and banking. B. public policy C. fiscal policy. D. accounting standards.

Economics

Movie theaters charge lower prices to see a movie in the afternoon than in the evening because there is an:

A. elastic demand to see movies in the afternoon. B. elastic demand to see movies in the evening. C. inelastic supply of movies in the evening. D. inelastic demand to see movies in the afternoon.

Economics