When actual inflation is less than expected inflation
A) borrowers lose and lenders gain. B) borrowers gain and lenders lose.
C) borrowers and lenders both lose. D) borrowers and lenders both gain.
A
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If the fractional reserve system did not exist,
a. the banking system could not create money. b. there would be no effect on the ability of the banking system to create money. c. banks would loan out its required reserves. d. banks would be highly susceptible to bank runs. e. the banking system would realize the money multiplier.
Suppose that at a firm's current level of production the marginal product of capital is equal to 10 units, while the marginal rate of technical substitution between capital and labor is 2. Given this, we know the marginal product of labor must be
A. 5. B. 10. C. 20. D. It is not possible to say with the information given in the problem
When a good is excludable:
A. one person's consumption prevents or decreases others' ability to consume it. B. it is possible for sellers to prevent its use by those who have not paid for it. C. the government has specific import policies limiting its supply. D. consumers have a perception of scarcity of that good.
A key decision that all firms make is which technology to use in the production of their products.
Answer the following statement true (T) or false (F)