Inflation might lead to ________ because ________
A) lower demand for stocks; of tax distortions
B) lower demand for cash; money does not typically yield interest
C) uncertain or uneven demand for goods; higher fluctuations in relative prices make it harder for consumers to compare among goods and make rational consumption decisions
D) all of the above
E) none of the above
D
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A temporary adverse supply shock directly causes
A) a shift down and to the left of the IS curve. B) a shift to the left of the FE line. C) a shift down and to the right of the LM curve. D) a shift up and to the right of the IS curve.
"Ceteris paribus" means
A. "making all the necessary changes." B. "other things equal." C. "at the aggregate level." D. "invisible hand."
Assume that the price of sorghum grain is $6.00 per bushel. When we apply 30 tons of fertilizer on our 20 acres of sorghum grain, the total yield is 1,000 bushels. When we apply 50 tons of fertilizer, the total yield is 1,500 bushels. What is the
marginal value product per ton of fertilizer? A) $150/ton B) $25/ton C) $75/ton D) None of the above
Suppose a perfectly competitive ukulele factory can produce 35 ukuleles at an output at which marginal cost equals marginal revenue. The price per ukulele is $1300 and the average total cost is $1500. What is the profit or loss that this furniture
factory is earning? A) $700.00 B) -$7,000.00 C) -$1,050.00 D) -$450.00