If inflation increases unexpectedly, then
A) borrowers pay a higher real interest rate than they expected.
B) lenders receive a lower real interest rate than they expected.
C) lenders gain and borrowers gain.
D) neither borrowers nor lenders lose.
Answer: B
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Because demand curves slope downward according to the Law of Demand, the price elasticity of demand is a negative number
What will be an ideal response?
Scarcity is the result of:
a. government decision making b. inappropriate normative judgments. c. positive economics. d. wants that exceed the resources necessary to provide them.
Members of the Board of Governors of the Federal Reserve are
A. appointed by the president of the United States. B. appointed by the Treasury Secretary. C. appointed by the outgoing chairman of the Board of Governors and confirmed by Congress. D. elected by the stockholders of the eight largest banks in the United States.
All of the following apply to the description of a market in equilibrium except:
A. quantity supplied equals quantity demanded. B. the intersection of the supply and demand curves. C. no excess supply exists. D. the price of the good is falling.