Suppose that last year you borrowed $100 at 5 percent interest to purchase a $100 pair of Nike cross-training shoes. This year you repaid the bank with interest. If the inflation rate was 10 percent last year (so the price of shoes rose to $110), your purchase of the shoes would
a. make you an inflation winner because you gained $5 by borrowing rather than waiting the year to buy the shoes
b. make you an inflation loser because you paid $5 more than you should have for the shoes
c. not be affected at all by the inflation rate because the shoes were already purchased
d. be valued at $100
e. be valued at $110 multiplied by the inflation rate
A
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a. have never been tried as an instrument of environmental policy. b. have been the chief instrument of environmental policy. c. have been rejected as a tool of environmental policy. d. are the tool of future environmental policy, based on 1993 legislation.
Economic analysis indicates that
A) no matter what our objectives in life, they are easier to achieve if we have more wealth. B) the desire for more wealth is limited to those who are interested only in their personal welfare. C) wealthy people are happier than those with lots of friends, satisfying marriages, and strong religious convictions. D) single-minded pursuit of money and wealth is the key to happiness.
How will an increase in factor mobility, ceteris paribus, affect an economy's production possibilities curve?
A. Result in a movement along the curve. B. Shift the curve outward. C. Result in a movement from outside the curve to a point on the curve. D. Shift the curve inward.
A currency system in which governments try to keep the values of their currencies constant against another is called a ________ exchange rate system.
A. fixed B. stable C. consistent D. flexible