If inflation is higher than anticipated and benefits are not indexed, which group loses purchasing power?
a. Borrowers and lenders
b. Lenders and retirees
c. Borrowers and retirees
d. Only borrowers
e. Only lenders
B
Economics
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The supply of loanable funds curve has a positive slope because the
A) lower the real interest rate, the higher the return to saving. B) lower the real interest rate, the lower the return to saving. C) average return in the stock market is directly related to the real interest rate. D) quantity of investment increases when the real interest rate increases. E) higher the real interest rate, the lower the return to saving.
Economics
Explain why equalizing the marginal utility per dollar for all goods maximizes utility
What will be an ideal response?
Economics