Inflation tends to redistribute real income from lenders to borrowers
a. True
b. False
Indicate whether the statement is true or false
True
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The unreported or illegal production of goods and services in the economy that is not counted in GDP is termed:
a. money laundering. b. the underground economy. c. disposable personal income. d. indirect national income. e. unreported capital consumption.
Assume that for a given year, the nominal interest rate is 9 percent while inflation rises to 11 percent indicating a 4 percent higher rate than anticipated. Which group of people is made better off by the inflation?
a. Those who lend at fixed interest rates b. Those who borrow at fixed interest rates c. Those who borrow at variable interest rates d. Those who receive fixed incomes e. Those who save at variable interest rates
Which of the following increases demand for a good
A) a rise in the price of a complement B) the expectation that future income will be higher C) an increase in income, assuming the good is an inferior good D) a decrease in the number of buyers E) a fall in the price of a substitute
When the going rate is $10.00 per hour, Ann wants to babysit 6 hours each week and Pat wants to babysit 4 hours each week. If the rate goes up to $12.00, Ann and Pat both double the number of hours they are willing to babysit each week. Based on this information, a combined supply curve will pass through the points:
A. price = $10.00, quantity supplied = 6 and price = $12.00, quantity supplied = 4. B. price = $10.00, quantity supplied = 10 and price = $12.00, quantity supplied = 20. C. price = $10.00, quantity supplied = 20 and price = $12.00, quantity supplied = 10. D. price = $10.00, quantity supplied = 4 and price = $12.00, quantity supplied = 6.