If prices increase rapidly
A) money's usefulness as a store of value is diminished.
B) money increases in value.
C) deflation is likely.
D) prices will decline to their normal level.
A
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Suppose a consumer has the following rule of thumb: Regardless of how gasoline prices fluctuate, she will always buy $20 of gasoline per week and then adjust her driving patterns accordingly. We can then conclude the following:
A. Her own-price elasticity of demand is equal to -1. B. Her income-elasticity of demand is 0. C. Her own-price elasticity is 0. D. Her income elasticity of demand is -1. E. Both (a) and (b). F. Both (a) and (d). G. Both (c) and (d) H. None of the above.
In the Keynesian model of income determination, consumer expenditure includes spending by
A) consumers on personal computers. B) businesses on personal computers. C) governments on personal computers. D) foreigners on domestic personal computers.
Which of the following makes it difficult for markets to produce public goods?
a. Free riders use the goods without paying for them. b. The government intervenes as a free rider. c. Intellectual property is easily stolen by foreign firms. d. Social pressures require firms to lower prices on the goods.
?Experimental data are easy to obtain in the social sciences.
Answer the following statement true (T) or false (F)