Suppose you lend $1,000 at an interest rate of 10 percent over the next year. If the expected real interest rate at the beginning of the loan contract is 4 percent, then what rate of inflation over the upcoming year would be most beneficial to you as the
lender? An inflation rate
A) equal to 0 percent.
B) greater than 6 percent.
C) equal to 6 percent.
D) equal to 4 percent.
Answer: A
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The evidence shows that in 1860–1910
(a) population and annual hours worked grew more rapidly than did the employed labor force. (b) population grew more rapidly than the labor force, but annual hours worked grew less rapidly. (c) population grew less rapidly than did the employed labor force, and the work day shortened. (d) population, productivity and the work day grew less rapidly than did the employed labor force.
When the price of a textbook is $100, 60 copies are demanded; and when the price of that textbook goes up to $120, 30 copies are demanded. In the price range between $100 and $120, the demand for the textbook is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.