If borrowers and lenders expect a higher rate of inflation,
a. nominal interest rates will tend to fall.
b. real interest rates will tend to fall.
c. nominal interest rates will tend to rise.
d. real interest rates will tend to rise.
C
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Deciding if a company will produce automobiles by robotics or manual labor answers the economic question of
A) how will the products be produced. B) who consumes the products produced. C) where will the products be consumed. D) what products will be produced.
Society's demand curve for a public good:
a. is given by the horizontal summation of individual demand curves. b. is given by the vertical summation of individual demand curves. c. cannot be derived from individual demand curves due to the nature of a public good. d. is given by the average citizen's individual demand curve.
Suppose the money market is in the liquidity trap and that the economy is experiencing a recessionary gap. A Keynesian economist would most likely advocate
A) expansionary monetary policy. B) contractionary monetary policy. C) expansionary fiscal policy. D) contractionary fiscal policy.
Use marginal analysis to explain why it is possible to “have too much of a good thing.” Use education as an example
Please provide the best answer for the statement.