The uncertainty of inflation is likely to affect:
A. Production and consumption decisions.
B. Production decisions but not consumption decisions.
C. Consumption decisions but not savings.
D. The elderly on fixed incomes but not current wage earners.
A. Production and consumption decisions.
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Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, if the market quantity demanded is 5, the price must be
A) $3. B) $6. C) $9. D) $12.
Rewarding or penalizing personal characteristics of a worker that are unrelated to his or her productivity is a description of
A) a negative externality. B) a labor quota. C) labor market discrimination. D) a non-income fringe benefit.
The multiplier effect following an increase in expenditure is generated by induced increases in consumption expenditure as income rises
Indicate whether the statement is true or false
A bank loans Greg's Ice Cream $250,000 to remodel a building near campus to use as a new store. On their respective balance sheets, this loan is
a. a liability for the bank and an asset for Greg's Ice Cream. The loan increases the money supply. b. a liability for the bank and an asset for Greg's Ice Cream. The loan does not increase the money supply. c. an asset for the bank and a liability for Greg's Ice Cream. The loan increases the money supply. d. an asset for the bank and a liability for Greg's Ice Cream. The loan does not increase the money supply.