Suppose that last year you borrowed $100 at 5 percent interest to purchase a $100 pair of Nike cross-training shoes. This year you repaid the bank with interest. If the inflation rate was 10 percent last year (so the price of shoes rose to $110), your purchase of the shoes would
a. make you an inflation winner because you gained $5 by borrowing rather than waiting the year to buy the shoes
b. make you an inflation loser because you paid $5 more than you should have for the shoes
c. not be affected at all by the inflation rate because the shoes were already purchased
d. be valued at $100
e. be valued at $110 multiplied by the inflation rate
A
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Suppose Ann can produce 8 units of a material good (M) or 4 units of a spiritual good (S) in a day, while Ben can produce only 3 Ms or 3 Ss in a day. Which statement below is true?
A) Ann is the most efficient producer of spiritual goods. B) Ann is the most efficient producer of material goods. C) Ben is the least efficient producer of spiritual goods. D) All of the above are true.
In what ways do economists and policymakers who believe that the federal government should have a larger role in the health care system criticize the Patient Protection and Affordable Care Act (ACA)?
What will be an ideal response?