If both borrowers and lenders anticipate the rate of inflation correctly, then
a. borrowers will lose real income.
b. lenders will lose real income.
c. both borrowers and lenders will lose real income.
d. neither borrowers nor lenders will lose real income.
D
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Unbalanced oligopolies are not stable
Indicate whether the statement is true or false
All of the following impact the effectiveness of Fed policy except
A. Expectations about the economy in the future. B. Trade Unions. C. Global sources of money. D. The time lag between when interest rates change and when investment changes.
Growing technology has provided increased opportunities for higher-skilled workers
Indicate whether the statement is true or false
Suppose the economy was initially in a long-run equilibrium. Then the world economy expands so that foreign incomes rise. U.S. aggregate demand ________ and eventually the money wage rate ________
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls