When the unanticipated inflation rate is zero
A. creditors gain at the expense of debtors.
B. both creditors and debtors lose at the expense of the government.
C. debtors gain at the expense of creditors.
D. neither creditors not debtors gain or lose.
Answer: D
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Refer to Table 1-2. What is Julius's marginal cost if he decides to stay open for three hours instead of two hours?
A) $0 B) $18 C) $54 D) $65
The high unemployment of 2008–2010 caused a substantial decrease in inflation, which created fears of deflation.
Answer the following statement true (T) or false (F)
Refer to the accompanying figure, which shows the market for cups of coffee. What might cause a shift from the original demand curve to the new demand curve?
A. An expectation that coffee prices will fall in the future. B. An increase in consumers' tastes for coffee. C. A decrease in the price of tea. D. An increase in the price of coffee creamer.
When the market for gasoline in Motorland is in equilibrium, the market price of gasoline is ________ the marginal social cost
A) $1.50 above B) $1.50 below C) equal to D) $1.20 above