Milovia is a small open economy. the general price level in the economy has been increasing at a rate of about 7.5 percent each year. jane wilson, an industry analyst, is of the opinion that such high inflation is adversely affecting aggregate demand in the economy and therefore its ability to grow her colleague, harry gomes, however, disagrees. according to harry, some amount of inflation is unavoidable in a growing economy higher prices for products to increase the level of corporate profits and induce firms to increase aggregate output. which of the following, if true, will indicate that higher prices will not induce firms to increase output? a. the milovian government offers subsidies on inputs used in many manufacturing industries b. the increase in the price of inputs outweighed the increase in the price of the final product c. in spite of rising inflation, people in milovia expect real incomes to increase substantially in the next few years d. the country's trade balance has been positive for the last five years e. the government purchased bonds in an open market operation last year

a loan? that’s my guess, anywho.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711. 

the answer would be price fixing, hope it