Author Question: In a market economy, uncertain levels of inflation A) make prices less useful as signals for ... (Read 55 times)

Alainaaa8

  • Hero Member
  • *****
  • Posts: 576
In a market economy, uncertain levels of inflation
 
  A) make prices less useful as signals for resource allocation.
  B) prompt firms to enter into fewer short-term contracts, and more long-term contracts, with suppliers.
  C) balance out income redistribution in the long run.
  D) are more beneficial to lenders than to borrowers, as lenders have a tendency to overestimate the expected inflation rate.

Question 2

If banks hold no excess reserves, checkable deposits total 1.5 billion, currency totals 400 million, and the required reserve ratio is 10, then the monetary base equals
 
  A) 550 million.
  B) 1.54 billion.
  C) 1.9 billion
  D) 15 billion.



sarahccccc

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

A

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

For a complete list of videos, visit our video library