Luke has lent his friend Mitch some money. However he underestimated the rate of inflation when they agreed to a repayment and interest schedule. Mitch will benefit from the inflation
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Even if all individual demand curves are downwardly sloped, the market demand curve may slope upward.
Answer the following statement true (T) or false (F)
By focusing on the short-run adjustments of aggregate demand, Keynesian economics risks _____________ the long-term causes of economic growth or the natural rate of unemployment that exists, even when the economy is producing at potential GDP.
a. overlooking b. fueling c. minimizing d. increasing
Suppose the company that owns the vending machines on your campus has doubled the price of a can of soda. They then notice that they are selling approximately 15 percent fewer sodas. The price elasticity of demand for sodas from the campus vending machines, therefore, is:
A. unit elastic. B. inelastic. C. elastic. D. infinite.
If total variable cost exceeds total revenue at all output levels, a perfectly competitive firm
A) should produce in the short run. B) is making short-run profits. C) should shut down in the short run. D) has covered its fixed cost.