Low inflation rates and high inflation rates impose different costs on society.
Answer the following statement true (T) or false (F)
True
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Consider debt-equity swaps as an approach to debt reduction. Briefly describe how this works. State two arguments in favor of significant reliance on this strategy and two arguments against
What will be an ideal response?
Who among the following individuals is not an underemployed or a discouraged worker?
a. A person employed part-time but willing to work full-time b. A homeless person who has not found work for a year and has given up looking for jobs c. A nuclear physicist unable to work because of illness d. A gourmet French chef working part-time at Burger King e. A 60-year-old professor who has stopped looking for a teaching job because schools consider him too old
Which of the following statements is correct? Monopolies are socially inefficient because they (i) charge a price above marginal cost. (ii) produce too little output. (iii) earn profits at the expense of consumers. (iv) maximize the market's total surplus
a. (iii) only b. (iii) and (iv) only c. (i) and (ii) only d. (i), (ii), (iii), and (iv)
A single firm that charges the monopoly price in the market earns $1,300. If another firm successfully enters the market, the incumbent's profits fall to $700 and the entrant earns $575. If the interest rate is 0.5, how high must the firm's profits from limit pricing be for limit pricing to be a profitable strategy for the incumbent?
A. ?L > $500 B. ?L > $200 C. ?L > $900 D. ?L > $1,000