{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

6 - 2T 28 29 30 31 32 33 Menu costs refers to a the cost...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 2T. 28. 29'. 30. 31. 32. 33. Menu costs refers to a. the cost ofmore fi'equent price changes inducedby higher inflation. b. the distortion in incentives created by inflation when taxes do not adjust for inflation c. resources used by people to maintain lower money holdings when inflation is high. d. the distortion in resource allocation created hyuncertainty coneerning relative price changes created by inflation Based on the quantity equation, ifM=1UD, Y=3, and 1'= 200, then P= a. l. b. 1.5. c. 2. :1 None of the above is correct. A. poor cormtry decides to institute an invesunenttas credit. As a result a. interestrat'es fall and investment rises. b. both interest rates and investment fall c. both interest rates and inteshnent rise. :1 interestrates rise and investment falls. Whiehofthe followiugistiie most accurate statement ahouttherelationship betweenthenoruinal interest rate and flierealinterestrate? a. 'I'herealmterestrateisflieneruinalinterestrate dividedhy therate ofinflation. b. 'Iherealmterestrateisflieneminalinterestrateplustherateofiuflafion c. Iherealmterestrateisflienominalmterestrateminusflierateofinflafion d. lherealmterestrateisflieneminalinterestratefimesflierateofinflafion Your hoss gives you an increase in the number of dollars you earn per hour. This increase in pay malres a. your real wage decrease. Ifyour real wage rose by a greater percentage than the price level, thenyour nominal wage decreased. b. your real wage increase. Ifyour real wage rose by a greater peroentage than theprice level, thenyour nominal wage also increased. c. your nominal wage iuerease. Ifyour nominalwage rose by a greaterpercentageflianthe price level, theuyour real wage decreased :1 your nominal wage iuerease It'your nomimlwage rose by a greater percentagethanthe price level, thenyour real wage also increased. Creditcardsare a. aunitof account. Discouraged workers a. are not counted either as part ofthe adult population or as part ofthe labour foroe. b. are counted as part ofthe adult population, and as unemployed. c. are counted as part oftlie adult population, but not as part ofthe labour force. d. None the above are correct ...
View Full Document

{[ snackBarMessage ]}