When inflation falls, people
a. make less frequent trips to the bank and firms make less frequent price changes.
b. make less frequent trips to the bank while firms make more frequent price changes.
c. make more frequent trips to the bank while firms make less frequent price changes.
d. make more frequent trips to the bank and firms make more frequent price changes.
a
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The natural rate hypothesis states that when the inflation rate ________, in the short run the unemployment rate ________ and in the long run the unemployment rate ________
A) falls, decreases; decreases B) rises, decreases; returns to the natural unemployment rate C) falls, increases; decreases D) falls, decreases; returns to the natural unemployment rate E) rises, decreases; decreases
In the small country of Talisman, the liquor industry is monopolized by a single producer Best Drinks Inc Best Drinks charges high end customers like 5-star hotels a much higher price than it charges local pubs. Identify the correct statement from the following
a. Best Drinks is aware of the variations in the valuation of its products by different consumer segments. b. Best Drinks minimizes cost by charging different consumers different prices. c. Charging different prices for different consumers increases consumer surplus. d. Best Drinks charges different prices because its sole objective is sales maximization.
A. increase the prices of U.S. imports but decrease the prices of U.S. exports
A. make Mexico's exports and imports both more expensive. B. make Mexico's exports more expensive and its imports less expensive. C. make Mexico's exports less expensive and its imports more expensive. D. increase Mexican exports.
When a firm increased its output by one unit, its AC rose from $45 to $50. This implies that its MC is
A) $5. B) between $45 and $50. C) greater than $50. D) Cannot be determined from the above information