If individuals save less because inflation lowers returns on savings, this should ________ real interest rates and ________ investment expenditures

Last year the price level increased from 118 to 122. The increase in the price level leads to a decrease in

A) potential GDP. B) the money wage rate. C) the buying power of money. D) the real interest rate. E) the price of domestic goods and services relative to foreign goods and services.

All economic questions arise from the fact that resources are scarce

Indicate whether the statement is true or false