The cost of inflation to society includes
A) unpredictable changes in the value of money.
B) higher interest rates paid by borrowers.
C) higher interest rates paid by the government on its debt.
D) the lost spending when people do not have enough money.
Question 2
Unit elastic demand means that the
A) ratio of a change in the quantity demanded to a change in the price equals 1.
B) ratio of a percentage change in the quantity demanded to a percentage change in the price equals 1.
C) demand curve is vertical.
D) demand curve is horizontal.
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