Imagine you own an ice cream store in New York City. Unpredictable inflation hurts your business because:
What will be an ideal response?
- when prices change in unpredictable ways, it makes it difficult for the business to make planschecked
- high inflation will reduce the real value of savingschecked
- low inflation will increase the real interest ratechecked
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Suppose that you decide to purchase either stocks or bonds of a particular corporation and you also prefer to receive some returns from the securities every year. Which should you buy - stocks or bonds? Why?
What will be an ideal response?
Graphically, market demand for a product:
A. is the horizontal difference of the individual demand curves. B. is the horizontal sum of the individual demand curves. C. is the vertical difference of the individual demand curves. D. is the vertical sum of the individual demand curves.