A network externality refers to a situation where:
A) the value of a product increases as more consumers start to use it.
B) firms collude to sell products at a price higher than the equilibrium market price.
C) a firm that has control over key resources auctions the resources off to other firms.
D) the government interferes to prevent the concentration of market power in the hands of a few firms.
A
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If inflation is higher than expected, then borrowers make nominal interest payments that are less than they expected
a. True b. False Indicate whether the statement is true or false
To keep high inflation from eroding the value of money, monetary authorities in the United States:
A. Create token money that is less than its intrinsic value B. Make paper money legal tender for the payment of debt C. Establish insurance on checkable deposit accounts D. Control the supply of money in the economy