Johnny is a sophomore in college and has a 1.5 cumulative grade point average (GPA). Johnny's cumulative GPA will be better next semester if he (i) performs better than he did last semester. (ii) performs better than his cumulative GPA. (iii) gives an average performance

For a borrower, an increase in the real interest rate

A) definitely reduces current consumption and increases future consumption. B) reduces current consumption and has an uncertain effect on future consumption. C) has an uncertain effect on current consumption and increases future consumption. D) has an uncertain effect on both current and future consumption.

Real business cycle proponents would agree with all of the following except

a. the government's efforts to stabilize the economy can be counterproductive. b. unanticipated changes in the money supply are destabilizing to the economy. c. business cycles are a natural response to technology shocks. d. markets are perfectly competitive.