Assume a new technology further reduces the cost of producing calculators. Also assume that consumers have cut back on their scheduled purchases in anticipation of even more cost-saving developments. As a result, we can expect

a. a decrease in price but no predictable change in output.
b. a decrease in output but no predictable change in price.
c. an increase in output but no predictable change in price.
d. a predictable decrease in both output and price.

a

Economics

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The costs of inflation that arise from trying to reduce cash holdings are known as

A) diminishing costs. B) menu costs. C) chain-index costs. D) shoe leather costs.

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What characteristic defines something as money?

A) assets declared by the government to be of value B) a medium of exchange widely accepted in an economy C) notes you can deposit in a savings account D) an asset that earns interest

Economics