Which of the following groups would most likely to benefit from inflation?
a. borrowers
b. lenders
c. creditors
d. pensioners
a
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The interest rate that banks charge one another for the loan of excess reserves is the ________.
A. discount rate B. interest on reserves C. federal funds rate D. prime rate
If real GDP exceeds aggregate planned expenditure, then the change in unplanned inventories is ________ and firms ________ production
A) negative; decrease B) positive; increase C) zero; do not change D) negative; increase E) positive; decrease
Suppose two firms are in a game situation, and they each must decide on a strategy regarding whether to select a high price or a low price Profits for a firm are highest when it selects a low price, while the other selects a high price; profits are lowest if one selects a high price, while the other selects a low price; profits are in between when both select low prices; and profits are slightly higher when both select high prices. In the absence of collusion we expect
A) one of the firms to select a high price and the other a low price. B) one firm to select a high price and the other a low price in the first period, followed by a reversal in the second period. C) both to select high prices. D) both to select low prices.
A pandemic causes the deaths of a large proportion of the working-age population in the country of Alpha. As a result the real wage in Alpha ________ and employment in Alpha ________.
A. decrease; increase B. decrease; decrease C. increase; increase D. increase; decrease