High inflation helps people store wealth over time, which helps them to be able to smooth out their consumption over their lifetimes

Refer to Figure 4.8. If half of your friends go to the beach and half go to the park, you will receive a payoff of ________ if you go to the beach

A) 0 B) 250 C) 500 D) You cannot determine your payoff because the figure represents your payoff from going to the park.

The "law of demand" refers to the fact that, all other things remaining the same, when the price of a good rises

A) the demand curve shifts rightward. B) the demand curve shifts leftward. C) there is a movement down along the demand curve to a larger quantity demanded. D) there is a movement up along the demand curve to a smaller quantity demanded.