Rachel agrees to lend Phoebe $100 for six months and charges her interest of 2 percent. At the end of the six-month period, prices have risen by 4 percent
a. Purchasing power has been redistributed to Rachel.
b. No purchasing power has been redistributed.
c. Purchasing power has been redistributed to Phoebe.
d. Both Rachel and Phoebe received extra purchasing power.
c
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Providing training to unemployed individuals will help to alleviate
a. frictional unemployment b. seasonal unemployment c. structural unemployment d. cyclical unemployment e. short-term unemployment
The large budget deficits of 2001-2011 were
a. financed entirely through borrowing from domestic sources. b. accompanied by a rapid increase in private investment, which will enhance the welfare of future generations of Americans. c. accompanied by an increase in consumption as a share of GDP, which indicates the current generation of Americans is gaining at the expense of future generations. d. accompanied by large trade surpluses, which will enhance the welfare of future generations of Americans.