Which of the following helps to explain why the "inflation fallacy" is a fallacy? Nominal incomes tend to rise at the same time that the price level is rising, leaving real income unchanged. Inflation only changes real variables. As the price level rises, the value of a dollar falls. Increases in the price level can be created by increases in money demand.

The principle of monetary neutrality implies that an increase in the money supply will increase the price level, but not real GDP. real GDP, but not the price level. neither the price level nor real GDP. real GDP and the price level.

Tyler's brother works in a shoe store. 7 Tyler's brother earns a commission. He makes \( 2.5 \% \) of the amount he sells. Last week, he sold \( \$ 900 \) worth of shoes. How much was his commission? (a) (b) The store bought a pair of shoes for \( \$ 50 \) and sold it for \( \$ 80 \). What percentage was the markup? (c) Tyler's brother earns \( \$ 12 \) per hour. The store offers him a raise -- a \( 5 \% \) increase per hour. After the raise, how much will Tyler's brother make per hour? \( \$ \) \$

What is the likely outcome in a market when supply exceeds demand for a product, leading to surpluses? The product will become scarce, leading to a shortage in the market. Businesses may lower prices and run sales or promotions to encourage more purchases. Prices are likely to increase as businesses respond to the excess supply. Prices will remain stable, and demand will catch up with supply over time.

If the public decides to hold more currency and fewer deposits in banks, bank reserves decrease but the money supply does not change. decrease and the money supply eventually decreases. increase and the money supply eventually increases. increase but the money supply does not change.

20 Klubben betalar 57500 kr under ett år i ränta på ett lån. Räntesatsen är \( 5 \% \). Hur stort är lănet?