What problems can high inflation rates cause for the economy?
What will be an ideal response?
The problems that inflation causes for the economy include the loss of purchasing power of money, menu costs, and an unintended redistribution of income.
Economics
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The average propensity to save (APS) is
A) the difference between the amounts of real disposable income consumed and saved. B) the percentage of additional real disposable income that will go toward real saving. C) the rate at which real savings changes over time. D) the percentage of real disposable income saved.
Economics
When MR < MC for a firm, the firm should
A) reduce its level of output. B) stay at the same level of output. C) stop producing. D) increase output, unless P < AVC.
Economics