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Nominal and Real Interest Rates on a Loan
Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Then inflation turns out to be higher than they both expected.
a. Is the real interest rate on this loan higher or lower than expected?b. Does the lender gain or lose from this unexpectedly high inflation? Does the borrower gain or lose?c. Inflation during the 1970s was much higher than most people had expected when the decade began. How did it affect homeowners who obtained fixed- rate mortgages during the 1960s? How did it affect the banks that lent the money?
Which of the following is the best example of a monopolistic competitor? Firms in a monopolistically competitive industry produce:
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The rising stock market implies an increase in wealth, at least as measured on paper. If we assume that some of this increased wealth gets consumed, then the rising stock market fuels an increase in aggregate demand, and may contribute to an inflatio..
Required to find out an articles about price elasticity in the home building industry
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Suppose that the software market currently has one firm operating -Microhard. What contract should be writen between the bank and Newvel?
Answer the following questions on the basis of the monopolist's situation illustrated in the following graph.
Describe various goods you either buy or sell at your workplace that are price elastic.
Assume that Japanese and U.S automakers produce on identical isoquats. Wages are higher in Japan than in the United States.
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