The Circular Flow Model:
a. Shows that inflation harms consumers and boosts business profitability.
b. Proves that inflation reduces the purchasing power of consumers and does not affect businesses.
c. Has no application to questions relating to inflation.
d. Suggests that when the actual inflation was expected, it may not harm anyone.
.D
You might also like to view...
Approximately 1 in 12 business firms fail each year in the Unites States.
Answer the following statement true (T) or false (F)
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Interest-rate risk is the riskiness of an asset's returns due to
A) interest-rate changes. B) changes in the coupon rate. C) default of the borrower. D) changes in the asset's maturity.
If a country made it easier for people to establish and prove the ownership of their property, real GDP per person would likely rise
a. True b. False Indicate whether the statement is true or false