1. which of the following is true regarding the target inflation rate? a.) a positive target inflation rate increases the likelihood that firms will need to reduce nominal wages when the demand for labor falls. b.) a positive target inflation rate is preferred because the country will be able to better avoid a liquidity trap. c.) a positive target inflation rate increases the risk of deflation. d.) a target inflation rate of zero is a good policy because this will keep prices stable.2. your senators now claim that lowering prices would be good for everyone—"who doesn’t like lower prices, after all? " they tell you they plan to lobby for deflation. which of the following is true about deflation? ita.) makes debt harder to pay back because loans are made in nominal terms, and less borrowing means less spending. b.) decreases the value of savings in real terms. c.) increases consumption because people like falling prices. d.) will make people to expect prices to start rising and will want to spend more before they do.

Read the overview below and complete the activities that follow.apartment complexes often look for ways to recruit new tenants and retain current tenants. although apartment complexes offer the tangible benefit of shelter to their tenants, many apartment complexes also offer additional services to tenants to encourage tenants to stay or to support the rent prices. the following scenario identifies the several service gaps of a company that runs an apartment complex as well as solutions for reducing these service gaps.concept review: customers have certain expectations about how a service should be delivered. a service gap occurs when the delivery of a service fails to meet customer expectations. there are four types of service gaps: knowledge gap, standards gap, delivery gap, and the communications gap. it is important for marketers to identify these gaps and develop strategies for minimizing them.match the example or solution to the appropriate service gap category.1. wait for repairs 5. train employees well2. understand expectations 6. incentives for tenants3. do not overpromise 7. family movie night4. empower employees 8. delayed lawn careservice gap example solutionknowledge gap standards gap delivery gap communication gap