Suppose the rate of inflation unexpectedly decreases from 7% to 4%. Which one of the following would most likely benefit from this unexpected reduction in the rate of inflation?
A) creditors.
B) a borrower whose loan has a fixed nominal interest rate.
C) debtors.
D) workers who are covered by a COLA agreement.
A
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If the demand curve for oranges is a downward sloping straight line, the price elasticity of demand will increase the
A) higher the price of oranges. B) higher the price of other fruits. C) higher the income level of consumers. D) lower the price of oranges.
In the short-run, the lowest price that a perfectly competitive firm will accept without closing its doors is found by examining the average variable cost curve
a. True b. False Indicate whether the statement is true or false
Because of the popularity of the movie "Frozen," there is a large increase in demand for the merchandise, there is also many new companies producing items from backpacks, to dresses, to "Frozen" themed food items. How has this affected the market for "Frozen" merchandise?
A. Price increases and quantity is indeterminate. B. Quantity increases and price is indeterminate. C. Price decreases and quantity is indeterminate D. Quantity decreases and price is indeterminate.
The monetary base consists of:
A) currency plus reserves. B) currency plus required reserves. C) currency plus excess reserves. D) currency plus demand deposits.