When the inflation rate ends up being lower than expected,
a. everyone benefits because money is cheaper
b. everyone benefits because prices do not increase
c. lenders of fixed-rate mortgages generally benefit because they will make higher profits than they had calculated
d. borrowers with fixed-rate loans will benefit because their purchasing power will not decline as much
e. no one benefits because everyone made financial calculations based on the projected interest rate
C
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Is beer taxation a regressive, proportional, or progressive tax if viewed as a point in time? Please explain your answer. What about if viewed over a person's lifetime? If your answer changes, please explain why
What will be an ideal response?
In pure competition:
a. the optimal price-output solution occurs at the point where marginal revenue is equal to price b. a firm's demand curve is represented by a horizontal line c. a firm is a price-taker since the products of every producer are perfect substitutes for the products of every other producer d. a and b only e. a, b, and c
Refer to the following graph. An increase in aggregate demand when the economy is already at full employment is reflected as a rightward shift of the aggregate demand curve from
a. aggregate demand would have to increase.
b. aggregate demand would have to decrease.
c. aggregate supply would have to increase.
d. aggregate supply would have to decrease.
A pure public good is one that is
a. rival and excludable b. rival and nonexcludable c. nonrival but excludable d. nonrival and nonexcludable e. provided by a government agency