AP Macroeconomics Quiz
20 questions · no time limit
0:00
ECONOMIC INDICATORS AND THE BUSINESS CYCLE
Question 1 of 20
No time limit
Current
Answered
Flagged
Not seen
In an economy experiencing inflation, the inflation rate is 5% per year for several years, but the rate is difficult to forecast. A lender and a borrower negotiate a 5-year nominal interest rate on a fixed-rate loan, and both sides spend additional resources purchasing forecasts and writing more complex contracts to protect against unexpected inflation. Which cost of sustained inflation is most directly illustrated by these added precautions?
YOUR PROGRESS
20
QUESTIONS
Ready when you are
Answer in any order. Your progress shows here as you go.
QUESTIONS
KEYBOARD
Pick an answer ABCDE
Next question ↵→
Previous ←
Flag for review F
Answers save as you go · flagged questions come back at the end