If a student borrowed 5,000 at a fixed rate of 8.9 percent to pay for this year's college expenses and the annual inflation rate turns out to be 11 percent, then the student's purchasing power for the year has increased.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Which of the following lies primarily within the realm of microeconomics?
a. an empirical analysis of the relationship between the growth of the money supply and the rate of inflation
b. an economic model forecasting the impact of a tax increase on consumer spending and national output
c. a study of supply and demand conditions in the market for orange juice
d. a model forecasting the impact of a change in interest rates on the level of investment in the economy
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