Compounding:
A. is beneficial to borrowers, but costly to savers.
B. is beneficial to savers, but costly to borrowers.
C. is costly to both borrowers and savers.
D. is beneficial to borrowers and savers alike.
Answer: B
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Which of the following statements is true of a barter system? a. In a barter system, it is difficult to keep track of the relative values of goods and services. b. In a barter system, an individual offers money to import goods and services
c. In a barter system, an individual offers currency notes to get coins. d. In a barter system, different kinds of money are exchanged for one another. e. In a barter system, individuals are self-sufficient.
In the economy above:
A. the price level is rising faster than nominal GDP.
B. nominal and real GDP are growing at the same rate.
C. the growth of nominal GDP understates the growth of real GDP.
D. the growth of nominal GDP overstates the growth of real GDP.