Marta lends money at a fixed interest rate and then inflation turns out to be higher than she had expected it to be. The real interest rate she earns is
a. higher than she had expected, and the real value of the loan is higher than she had expected.
b. higher than she had expected, and the real value of the loan is lower than she had expected.
c. lower than she had expected, and the real value of the loan is higher than she had expected.
d. lower then she had expected, and the real value of the loan is lower than she had expected.
d
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You can buy a season ticket to the Metropolitan Opera for $800. A season ticket plan to see the New York Knicks is $1600. Which of the following is a CORRECT statement?
A) The money price of opera tickets is 1/2 of a Knicks ticket per opera ticket. B) The opportunity cost of a Knicks ticket is 2 opera tickets per Knicks ticket. C) The relative price of an opera ticket is $800. D) the money price of a Knicks ticket is 2 opera tickets per Knicks ticket.
A business cycle is the pattern of short-run upward and downward movements in production and jobs
Indicate whether the statement is true or false