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Question 14 (1 point) Inflation harms the economy because: (Select all that apply) It discourages businesses from investing in productive assets It incentivizes consumers to

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Question 14 (1 point) Inflation harms the economy because: (Select all that apply) It discourages businesses from investing in productive assets It incentivizes consumers to hold onto cash Transaction and opportunity costs of trying to spend money quickly Changing listed prices and replacing bank notes is costlyQuestion 15 (1 point) Consider a small economy in which only two final goods are produced domestically: 2021 2022 Quantity of dumbphones 1,000 1,200 Price of dumbphones (dollars) 50 55 Quantity of bikes 500 600 Price of bikes (dollars) 350 400 The 2022 Real GDP (thousands of 2021 dollars) is 225 The 2022 Real GDP (thousands of 2021 dollars) is 270 The 2022 Real GDP (thousands of 2021 dollars) is 306 None of the above

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