Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).According to this Application, more years of work would be required to pay off a student loan if all prices (including your salary):
A. remained stable.
B. increased by 20 percent.
C. decreased by 10 percent.
D. increased by 40 percent.
Answer: C
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Explain the relationship between the interest rate on a bond and the default risk on a bond
What will be an ideal response?
Both monopolistically competitive firms and perfectly competitive firms maximize profits
A) by producing where price equals average total cost. B) by producing where price equals average variable cost. C) by producing where marginal revenue equals marginal cost. D) by producing where marginal revenue equals average revenue.
Aggregate demand is the total demand for
A. all intermediate and final goods. B. all monetary investments. C. real and financial investments. D. all final goods and services.
The Personal Consumption Expenditure Index (PCE) is a
A. price index measuring the changes in prices of all new goods and services produced in the economy. B. statistical measure of a weighted average of prices of commodities that firms produce and sell. C. statistical measure of average prices using annually updated weights based on surveys of consumer spending. D. statistical measure of a weighted average of prices of a specific set of goods and services purchased by wage earners in urban areas.