High profits in a particular industry indicate that
A. Consumers want more of that industry's goods.
B. Consumers are satisfied with the level of production of that industry's goods.
C. Consumers want less of that industry's goods.
D. Producers are satisfied with the level of production of that industry's goods.
Answer: A
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Some types of aid limit or reduce potential benefits as a result of ______ , particularly when aid must be spent on goods or services from the donor country.
Fill in the blank(s) with the appropriate word(s).
Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of 15 percent. If a borrower expects that the rate of inflation next year will be 10 percent and the actual rate of inflation next year is 12 percent:
a. neither the borrower nor the lender benefits from inflation. b. both the borrower and the lender lose from inflation. c. the borrower benefits from inflation, while the lender loses from inflation. d. the lender benefits from inflation, while the borrower loses from inflation.