In what way does inflation redistribute wealth?
A. Inflation redistributes wealth from lenders to borrowers.
B. Inflation redistributes wealth from long-term borrowers to short-term borrowers.
C. Inflation redistributes wealth from borrowers to lenders.
D. Inflation redistributes wealth from short-term borrowers to long-term borrowers.
Ans: A. Inflation redistributes wealth from lenders to borrowers.
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a. flexible rather than fixed; less risk b. flexible rather than fixed; the same amount of risk c. flexible rather than fixed; more risk d. fixed rather than flexible; the same amount of risk
If a firm seeks to maximize total revenue, it should produce the quantity where: a. marginal revenue equals zero
b. elasticity of demand is less than one. c. elasticity of demand is greater than one. d. marginal revenue is maximized.