During a period of deflation,
A. Borrowers are better off.
B. Time horizons are longer.
C. Consumer confidence increases.
D. Lenders are better off.
Answer: D
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What will be the likely effect of an increase in the demand for American goods in the markets of Mexico on the demand for dollars and the exchange rate between dollars and pesos?
What will be an ideal response?
A written contract between an employer and an employee creates value as long as:
a. the benefits exceed the costs of forming and enforcing it. b. the productivity of the employee is equivalent to the wage. c. on-the-job learning is unimportant. d. the relationship between the employer and the employee is short-term.
Based on the graph showing the Phillips curve, if a point C were added and it had a lower RGDP than point A, it should also have ______.
a. a lower inflation rate than point A b. the same inflation rate as point A c. a higher unemployment rate than point A d. the same unemployment rate as point A
Graphically, the market demand curve is:
A. greater than the sum of the individual demand curves. B. the vertical sum of individual demand curves. C. steeper than any individual demand curve that is part of it. D. the horizontal sum of individual demand curves.