When inflation is less than anticipated, inflation...
What will be an ideal response?
lenders gain at the expense of borrowers
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Suppose there are two small island countries: Avarice, which is populated by people who are completely self-interested, and Altruism, which is populated by people who have adopted social norms of generosity and cooperation. Commitment problems will be:
A. largely avoided on both islands. B. largely avoided in Altruism, but prevalent in Avarice. C. largely avoided in Avarice, but prevalent in Altruism. D. prevalent on both islands.
Refer to the table above. If there is no statistical discrepancy, the sum of all three balance of payments accounts equals
A) -$20 billion. B) +$220 billion. C) +$20 billion. D) zero E) +$200 billion.
Explain how our standard of living depends upon our level of real GDP per person, but there might not be a one-to-one relationship between the standard of living and real GDP per person. Give examples of things that can affect one, but not the other
What will be an ideal response?
Studies have shown that drinking one glass of red wine per day may help prevent heart disease. Assume this is true, and favorable weather has increased the grape harvest of California vineyards
In the market for red wine, these two developments would A) increase demand and increase supply, resulting in an increase in the equilibrium quantity and an uncertain effect on the equilibrium price of red wine. B) increase demand and increase supply, resulting in an increase in the equilibrium price and an uncertain effect on the equilibrium quantity of red wine. C) increase demand and decrease supply, resulting in an increase in the equilibrium quantity and a decrease in the equilibrium price of red wine. D) increase demand and increase supply, resulting in an increase in both the equilibrium price and the equilibrium quantity of red wine.