Economic profits disappear quickly when a market is

Inflation has no effect on an economy's well-being if

A) it is universally and accurately anticipated. B) relative prices are unaffected. C) the nominal rate of interest for both savers and borrowers rises by an amount just equal to the rate of inflation. D) all of these

Answer the following statement true (T) or false (F)

1) The consumer demand curve for a product is downsloping because marginal utility is constant when price declines. 2) The income effect explains an exception to the law of demand. 3) The substitution effect suggests that when consumers judge product quality by price, they will substitute high-priced products for low-priced products. 4) Noncash gift-giving involves value loss when the marginal utility of the gift to the receiver is less than the product price.