Inflation leads to ________
A) increased variability of relative prices only when it is anticipated
B) increased variability of relative prices only when it is unanticipated
C) increased variability of relative prices whether inflation is anticipated or not
D) lower variability of the general price level only when it is very high
E) none of the above
C
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For this question, assume that a country experiences a permanent reduction in its saving rate. Which of the following will occur as a result of this reduction in the saving rate?
A) a permanently slower growth rate of output B) no permanent effect on the level of output per capita C) a permanently lower level of output per worker D) both A and B E) both B and C
In a sealed-bid first price auction, if you notice that your competition is weaker, you should
a. Shade your bid more b. Shade your bid less c. Bid more aggressively d. Both B&C