Which of the following is an example of the shoeleather costs of inflation?
a. Tito's Restaurant has to print new menus to update its prices compared to other prices in the economy
b. Beto sells stocks and earns a real capital gain of $50, but is taxed for the nominal capital gain of $75
c. During Bolivia's hyperinflation, workers rushed to immediately convert their wages from pesos to black-market dollars
d. The after-tax real interest rate is lower when inflation is higher
c
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A central bank's attempt to prevent an appreciation of its currency can stimulate domestic inflation if the ________ of foreign currencies leads to ________ international reserves which ________ the monetary base
A) purchase; higher; increases B) purchase; lower; decreases C) sale; lower; decreases D) sale; higher; increases
In the long run, a monopolistic competitor's price will equal: a. marginal revenue
b. average total cost. c. marginal cost. d. minimum average total cost.
Refer to Figure 10.1. Suppose the individual is initially at point b. Based on the figure, the individual is currently:
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A. a saver, which is his optimal choice.
B. a borrower, which is his optimal choice.
C. a saver, though borrowing would increase his utility.
D. a borrower, though saving would increase his utility.
For an imaginary economy, the value of the consumer price index was 138.75 in 2016, and the inflation rate was 10 percent between 2015 and 2016 . The consumer price index in 2015 was
a. 126.1. b. 128.8. c. 148.8. d. 152.6.