Which of the following are consequences of inflation?
a. It increases the burdens on people with fixed incomes when inflation is not anticipated
b. It hurts savers who did not anticipate how high the inflation was, but helps those who have borrowed at a fixed rate before the inflation became apparent.
c. Inflation imposes costs on people who devote resources to protecting themselves from expected inflation.
d. all of the above
d
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Economic inefficiency of a monopoly is indicated by
A) P = ATCmin. B) P > MR. C) P > MC. D) MR = MC.
Bonds issued by state and local governments are called _____ bonds. Bonds issued by financially shaky corporations are called _____ bonds. Of these two, which type of bond usually pays a relatively higher interest rate?
Fill in the blank(s) with correct word
Which of the following would most likely occur if the federal government decreased its spending and reduced the size of the budget deficit during a period of full employment?
A. The rate of inflation would decline. B. The rate of inflation would rise. C. The government spending multiplier would double. D. Interest rates would fall.
If, with one unit of labor, the U.S. can produce 20 units of computer software and 10 units of computer hardware, and China can produce 4 units of software and 4 units of hardware, then
A. the United States has a comparative advantage in both goods. B. China has a comparative and absolute advantage in both goods. C. the United States has a comparative and absolute advantage in both goods. D. the United States has an absolute advantage in both goods.