If inflation is higher than expected, this helps borrowers (by reducing the real interest rate they pay) and hurts lenders (by reducing the real interest rate they receive)
Indicate whether the statement is true or false
TRUE
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The main goal of macroeconomic research is to
A) predict how the macroeconomy will perform in the future. B) analyze current macroeconomic data. C) develop new data that can be used to understand better the operation of the economy. D) make general statements about how the economy works.
The amount of a particular good or service that buyers in a market will purchase at a given price during a specified period is called:
A. quantity demanded. B. quantity supplied. C. demand. D. supply.
Since the 1950s
A) U.S. business cycle fluctuations have become milder. B) U.S. business cycle fluctuations have not changed. C) U.S. business cycle fluctuations have becomes more volatile. D) the United States has not experienced a business cycle.
Vertical integration can reduce transaction costs through all of the following ways except which one?
A) increasing the complexity of coordination B) decreasing the incentive for litigation C) decreasing search cost D) increasing information and control