If actual inflation is less than the expected rate of inflation, then probably
a. the borrower gains at the expense of the lender.
b. neither the borrower nor the lender gains.
c. the lender gains at the expense of the borrower.
d. the purchasing power of the borrower is increased.
c
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Suppose seller X is willing to sell one good X for $5, a second good X for $10, a third for $16, a fourth for $25, and the market price is $20 . What is seller X's producer surplus?
a. $15 b. $20 c. $22 d. $29
Hyperinflations are usually made possible by
A. multinational corporations. B. highly mobile international capital. C. governments printing money rapidly. D. higher and higher tax rates.
By affecting the amount of reserves in the banking system, the Fed can
A. increase government purchases. B. affect the size of the money supply. C. reduce government purchases. D. change the marginal tax rates.
Costs that do NOT vary with output are
A. marginal costs. B. variable costs. C. fixed costs. D. total costs.