An individual may borrow a certain sum of money from any of the three banks in his town
Bank 1 offers him loans at an annual rate of 5%, Bank 2 offers him loans at an annual rate of 3% per year, and Bank 3 offers him a loan at an annual rate of interest of 10%. A rational individual will:
A) borrow from Bank 2.
B) borrow from Bank 1.
C) borrow from Bank 3.
D) be indifferent about borrowing from any of the three banks.
A
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Explain why, in a simple economy which does not include the government or taxation, saving equals investment at the equilibrium level of output
What will be an ideal response?
Betty's Bagels makes and sells bagels from their local bakery. If Betty's Bagels become more popular with local residents and the probability of selling additional bagels increases, Betty's expected marginal benefit curve from holding additional bagels in inventory will shift to the ________ and the profit-maximizing number of bagels to hold in inventory will ________.
A) right; decrease B) left; increase C) left; decrease D) right; increase
Nominal GDP is calculated by using
a. prices set in a base year. b. average prices in all major cities. c. current prices d. prices charged by initial producers.