When a shortage of a goods leads to a price increase, its price usually rises because
A) Americans are committed to capitalism.
B) most people are better off if it does.
C) sellers can benefit by raising their prices.
D) higher prices lead to scarce goods being allocated most efficiently.
C
Economics
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Given a fixed nominal interest rate on a loan, unanticipated inflation:
a. decreases the burden of paying off the loan. b. increases the burden of paying off the loan. c. does not alter the burden of paying off the loan. d. benefits savers.
Economics
To say people respond to incentives means that people may alter their decisions when the costs and benefits of an action change
a. True b. False Indicate whether the statement is true or false
Economics