Given a fixed nominal interest rate on a loan, unanticipated inflation:
a. decreases the burden of paying off the loan.
b. increases the burden of paying off the loan.
c. does not alter the burden of paying off the loan.
d. benefits savers.
a
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In order for the first player to move in a sequential game to be able to gain an advantage from making the first move, the player must:
A) possess a dominant strategy that is better than the other player's dominant strategy. B) be able to achieve a higher maximum payoff than the other player. C) follow the same strategy he would pursue in a Nash equilibrium. D) be able to make a credible commitment to the strategy.
When interpreting the meaning of an exchange rate, the first step is to always:
a. know exactly what the exchange rate signifies in terms of which currency is the denominator. b. watch for ways the currency might lose value. c. learn about recent behavior of the exchange rate. d. know exactly what the rate is at any moment in time.
In order to improve living standards for future generations, the economy must
A. sacrifice consumer goods today. B. reduce its investment goods. C. increase government spending. D. reduce growth in the population.
If the price level rises, what will happen to aggregate supply curve?
A. It will shift outward. B. It will shift inward. C. Nothing. D. It will get steeper. E. It will get flatter.