In periods of high inflation,
A. people want to hold on to as much money as possible.
B. the purchasing power of money is decreasing.
C. nobody wants to work and earn income.
D. low nominal interest rates are likely to result.
Answer: B
You might also like to view...
Does the proprietor of a grocery store who owns the building in which his business is located have lower costs than a grocery store proprietor who must pay rent for the building in which his store is located?
A) No, because no two businesses will be exactly the same. B) No, because the owner-proprietor loses the rent he could otherwise have been paid. C) Yes, because he can afford to set lower percentage markups. D) Yes, if the cost saving is not offset by higher expenses in other areas.
What is meant by the term "incentives," and why are they important?
What will be an ideal response?
According to the above table, the equilibrium price of DVDs is
A) $16. B) $14. C) $12. D) $10.
If the GDP chain price index in a given year is less than 100, real GDP in that year would be greater than nominal GDP
a. True b. False Indicate whether the statement is true or false