With Increasing Inflation, Borrowing Becomes

question 99

Multiple Choice

With increasing inflation, borrowing becomes:

• A) more attractive because repayment can be made with cheaper money.
• B) less attractive because repayment is made with dearer money.
• C) impossible because money has lost its value.
• D) a mute issue because of liquidity issues.

Analyze the effects of price floors and price ceilings on market outcomes.

Calculate shortages and surpluses in the market given government interventions such as price floors and price ceilings.

Determine the equilibrium price and quantity in a market from given demand and supply equations or schedules.

Assess the impact of changes in market conditions on equilibrium price and quantity.

---

Definitions:

Defined Benefit

A type of pension plan where the benefits that an employee will receive upon retirement are predefined based on factors like salary and tenure.

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for an employee's future benefit.

Defined Benefit Plan

A pension plan that promises employees a fixed annual pension benefit at retirement, based on years of service and compensation levels.

Defined Contribution Plan

A retirement plan in which the employer, employee, or both make contributions on a regular basis, and the final benefits depend on the investment's performance.