Between a trough and a peak, the economy goes through a(n)Ohyperinflation.Obust.Orecession.O expansion.QUESTION 16A period when the economy shrinks is known asO a recession.O a contraction.O a slump.O All of these.QUESTION 17Dean borrows $400 from Tim. Tim wants to make a 10% real return on his money, so they both agree on a 10% interest rate paid nextyear. Dean and Tim did not anticipate any inflation, yet the actual inflation turned out to be 4% next year. In this case,O Dean is better off.O Tim will receive more than 10% of real rate of return a year from now.O Dean will pay $56 a year from now on.Tim is better off.

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Between a trough and a peak, the economy goes through a(n) Ohyperinflation. bust. recession. expansion. QUESTION 16

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Chapter1: Making Economics Decisions

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