In an unexpected inflation, lenders will generally:
A. neither gain nor lose relative to borrowers.
B. lose relative to borrowers.
C. The effect will be totally random.
D. gain relative to borrowers.
Answer: B
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In the Keynesian cross diagram, an increase in autonomous consumer expenditure causes the aggregate demand function to shift ________, the equilibrium level of aggregate output to rise, and the IS curve to shift to the ________,
everything else held constant. A) up; left B) up; right C) down; left D) down; right
Global warming is an externality
Indicate whether the statement is true or false
A monopolist’s total profit is shown by the difference between price and average cost per unit times the number of units sold.
Answer the following statement true (T) or false (F)
To say that a price ceiling is binding is to say that the price ceiling
a. results in a shortage. b. is set below the equilibrium price. c. causes quantity demanded to exceed quantity supplied. d. All of the above are correct.