If there are no restrictions on contracts, and if all parties in the economy accurately predict the rate of inflation over the next year, then
a. there will be no redistribution of purchasing power
b. purchasing power will be redistributed from wage earners to business owners
c. purchasing power will be redistributed from business owners to wage earners
d. purchasing power will be redistributed from lenders to borrowers
e. purchasing power will be redistributed from borrowers to lenders
A
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A good that has social costs that are less than private costs has a quantity that is
A. too high. B. equal to zero. C. just right. D. too low.
What is money? Explain in terms of the functions of money.
What will be an ideal response?
An increase in the money supply, other things equal, shifts the ________ curve to the ________
A) IS; right B) IS; left C) LM; left D) LM; right
The two major curves or lines in the TE-TP diagram are:
A) the total expenditure curve and the 45-degree line. B) the supply and demand curves. C) the total expenditures and national income curves. D) the total production and national income curves.