If a supply curve is horizontal, then supply is said to be perfectly elastic, and the price elasticity of supply approaches infinity
a. True
b. False
Indicate whether the statement is true or false
True
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Borrowers benefit and lenders lose when the
A) actual interest rate is less than the expected real interest rate. B) actual interest rate is greater than the expected real interest rate. C) actual interest rate is equal to the expected real interest rate. D) actual inflation rate is less than the expected inflation rate.
If the price of the Brazilian real is 60 cents and a U.S. resident purchases a Brazilian-manufactured item for 60,000 real, there will be
A) a quantity demanded of 60,000 real and a quantity supplied of $60,000. B) a quantity demanded of 60,000 real and a quantity supplied of $36,000. C) a quantity demanded of 60,000 real, but we cannot determine the effect in the market for dollars. D) a quantity supplied of 60,000 real and a quantity demanded of 60,000 yen.