The rate at which prices in general are increasing is called the:
A. inflation rate.
B. standard of living.
C. trade balance.
D. unemployment rate.
Answer: A
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The online encyclopedia known as Wikipedia is an example of a public good that provides information. Explain why this good did not need to be provided by the government
What will be an ideal response?
Most borrower-spenders in the financial system are
A) businesses and governments. B) banks and thrift institutions. C) households and foreigners. D) governments and financial institutions.
Which of the following is not a likely consequence of inflation?
a) Firms incur the “menu costs” of changing advertisements b) Some taxpayers are pushed into higher tax brackets c) The value of currency is reduced d) Banks reduce nominal interest rates to reflect expected inflation e) Price signals sent by consumers to firms are distorted
If the savings rate increases, then the optimum level of capital per worker falls
a. true b. false