Other things remaining the same, if a nation's real GDP rises, the demand to hold money:

For the simple case of a production function with two inputs in which the inputs are perfect complements, each isoquant is represented by:

A) a vertical line. B) a horizontal line C) a downward sloping straight line. D) a line that forms a right angle.

If you were a borrower, which of the following unexpected changes in inflation would you prefer once you have taken out a long term fixed rate loan?

a. An increase from 2% inflation to 6% inflation. b. An increase from 7% inflation to 10% inflation. c. A decrease from 14% inflation to 8% inflation. d. A decrease from 6% inflation to 3%.