The positive feedback from aggregate demand to investment is called
a. the investment multiplier.
b. the crowding-out effect.
c. the investment accelerator.
d. the crowding-in multiplier.
c
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If a borrower and lender agree to an interest rate on a loan when inflation is expected to be 7 percent and inflation turns out to be 10 percent over the life of the loan, then the borrower ________ and the lender ________.
A. gains; loses B. loses; gains C. is not affected; gains D. gains; gains
If individuals can credibly cooperate and split the gains, which payoff is the most likely? A: Not CheatA: CheatB: Not CheatA: 1, B: 50A: 1, B: 1B: CheatA: 2, B: 1A: 5, B: 5
A. 2, 1 B. 5, 5 C. 1, 11 D. 1, 1
Since 1300, the inflation rate has been greater than 2 percent per year and reaching its highest peaks
A) primarily between 1700 and 1900. B) primarily after 1900. C) primarily between 1400 and 1500. D) primarily before 1400. E) primarily between 1500 and 1700.
When the monetary base increases by $2 billion, the quantity of money increases by $10 billion. Thus, the money multiplier equals
A) 0.2. B) 5. C) 20.0. D) 0.5.