One cost of an unanticipated inflation is that it
A. decreases menu costs.
B. increases the purchasing power of money.
C. transfers wealth from borrowers to lenders.
D. transfers wealth from lenders to borrowers.
Answer: D
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Refer to the table above. What is the marginal benefit that Jenny derives from the fifth unit?
A) $0 B) $1 C) $6 D) $30
Measurements of TFP indicate that the East Asian success story is based on
A) a significantly different economic model from the one followed in the West. B) unusually large amounts of innovation. C) rapid increases in the education of the work force. D) high amounts of savings and investment. E) large current account surpluses.
Which of the following is a depository institution?
A) a life insurance company B) a credit union C) a pension fund D) a mutual fund
Which of the following will most likely happen when better technology is used in production?
A) an upward movement along the production possibilities curve B) an outward shift of the production possibilities curve C) an inward shift of the production possibilities curve D) a downward movement along the production possibilities curve